The development includes 127 new units, currently under construction on the Teglholmen peninsula in the former southern docklands of the Danish capital. The flats will cover a total area of 13,000 sqm with access to 63 underground parking spaces. The development is scheduled for completion at the end of 2016.

The development was sold by a Danish development company. The plan is to integrate the building into a property fund for private investors, scheduled for placement in late 2016.

“This project is an opportunity to act early and secure residential units for development in an outstanding location in the southern docklands of Copenhagen – and thus benefit from the positive economy in Copenhagen”, states Joachim Fritz, Managing Director of Patrizia GrundInvest.

There is currently strong demand for residential property in Copenhagen, which is only being stemmed by a comparatively low supply of accommodation. This is expected to fuel rises in rental prices and the cost of accommodation. Given its attractive location in the former southern docklands, which will be transformed into a modern residential area over the coming years, heightened demand for the acquired development is expected. There are already around 5,000 people living in Copenhagen’s southern dockland area, many of them young families. According to experts, this number is expected to rise to 15,000 inhabitants by 2025. This has to do in part with the fact that the Teglholmen peninsula is only 2 kilometres from Copenhagen city centre.

“This unique set of circumstances provides a favourable foundation for a sustainable investment – and incidentally this will be the first property fund for private investors to invest in residential property in Denmark”, states Fritz.