the global partner for pan-European real estate investment announces that together with Universal-Investment it has agreed to forward purchase the development of a 136-unit residential development project in Aarhus, Denmark, on behalf of Bayerische Versorgungskammer (BVK), Germany’s largest public pension group. The asset has been acquired in an off-market transaction from a consortium of private investors.
The scheme, which is being developed by leading developer Raundahl & Moesby A/S, comprises approximately 8,700 sq m of residential space across seven buildings and 38 underground car parking spaces. The development, which will feature a mix of one to four-bedroom rental apartments with an average unit size of 64 sq m, is expected to be completed in phases from 2019 to 2020.
The project is situated in Aarhus, Denmark’s second largest city, in a prime inner-city location adjacent to the botanical garden and the famous “The Old Town” attraction. It is also near local amenities, cultural institutions and the Aarhus Å river, which runs through the city.
This transaction increases Patrizia’s total assets under management (AUM) in Denmark to EUR 1.4 billion.
“This investment offers a rare off-market opportunity to acquire a residential turnkey project in a prime, established residential location in one of Aarhus’ most attractive areas. There is currently a limited supply of new residential accommodation in prime locations in Aarhus offering attractive average unit sizes and as a result, we expect this high-quality development to benefit from the strong long-term demand in the rental market. Furthermore, the positive outlook for Denmark’s residential market is backed by positive underlying economic fundamentals," says Nicolai Sehestedt Dalsgaard, Associate Director Transactions at Patrizia Denmark.