The four-asset portfolio comprises three newly-built operational properties and the forward-purchase of one that remains under development, all within the same city-centre scheme known as Bellakvarter. Totaling 36,200 sqm, the modern apartments of varying sizes have been purpose built for the rental market, while the majority of units benefit from a private terrace or balcony, with designated bike and car parking for residents of the scheme. The three standing assets, completed between 2018 and 2019, are almost fully occupied, while the city’s growing demand for rental stock bodes well for tenant interest in the one that remains under construction, due to complete within the next 12 months.
The residential scheme is centrally located in Ørestad, on the south side of Copenhagen, and with its own Metro station ensuring strong connectivity across the city. There is an abundance of commercial, retail and leisure amenities in the immediate vicinity, while the Amager Common bordering the scheme provides plentiful green space. The wider Bellakvarter neighbourhood includes the construction of 6,000 new residential units and 6,500 new work places.
Following its entry into the Nordic residential market in 2017, this transaction represents AXA IM - Real Assets’ second acquisition in the sector in Denmark, as it aims to capitalise on the robust economic fundamentals of the Scandinavian region. The acquisition also forms part of AXA IM - Real Assets’ wider strategy on behalf of clients to invest into residential asset classes which it believes are supported by strong demographic drivers, and adds to its c. EUR 10 billion portfolio of residential assets under management spread across 10 countries.
“We continue to grow our Nordic assets under management, as the supportive underlying economic fundamentals have established the region as one of Europe’s key real estate markets. This latest investment forms part of a high-quality scheme in a well-connected and desirable location that benefits from increasing occupier demand and attractive underlying market dynamics. Furthermore, the portfolio offers strong income return potential and limited future capex, supporting our goal of long-term value creation on behalf of our clients,” says Fredrik Söderlund, Country Head, Nordic Region, at AXA IM - Real Assets.
Colliers was sell-side advisor.
“This transaction helps to reconfirm that attractive Copenhagen residential rental properties continue to attract demand from important international property investors. In 2019 to date, Colliers has brokered the sale of existing and turnkey residential properties worth about DKK 3 billion to large European insurance companies and pension funds, and we see sustained strong investor appetite for new residential property assets and projects that match the quality features of the portfolio at hand”, says CEO Peter Winther, Colliers.
“The new residential area at Bella Center will see the development of high-quality housing in line with a strong masterplan involving highly attractive urban features for the benefit of residents and, by extension, investors. We have been delighted to assist Bellakvarter A/S in the transaction”, states Jacob Bruun Borring, Manager with Colliers Capital Markets.