The acquisition has been secured in cooperation with Copenhagen-based RUBIK Properties, a leading real estate investment advisor in Denmark and an established partner for Invesco Real Estate. The transaction further enhances Invesco Real Estate’s exposure to both the Danish residential investment market and the wider European PRS sector at a time when we are seeing strong asset class growth based on the highly attractive fundamentals that continue be present in the sector despite the impact of the COVID-19 pandemic over the last 12 months.
Vejlesvinget has been acquired from the developer 1927 Estate on behalf of Invesco’s strategic opportunities investment programme, and consists of 163 new build apartments with an average size of 78 sqm split over two buildings of between two and six floors extending to 6,515 sqm (83 units) and 6,245 sqm (80 units). The project is located in a recently developed area and will be one of the last remaining industrial/commercial properties to be redeveloped and will be delivered on a turnkey basis, with completion expected in Q4 2022. The development will prioritize sustainability measures such as DGNB certificates as well as relevant property technology solutions to create a competitive advantage in the market.
Vallensbæk is located towards Køge Bay and borders Ishøj, Brøndby, Albertslund and Taastrup. The area is attractive due to its proximity to Copenhagen City (eight stops by train in 20 minutes) although there are local shopping and leisure facilities at Vallensbæk Stationstorv, which has cafes, stores and restaurants. The train station, bus stops, public highway, schools, day care centres, parks and sports facilities are all within 1 km of the property. Public transport will be improved by the upgrading of the light rail which is due for completion in 2025.
High-quality residential assets in Copenhagen continue to be highly sought after. Growing unaffordability in Copenhagen’s centre - where rents are the 7th most expensive in Europe - coupled with strong regulation on home buyers are forecast to increase rental demand in Greater Copenhagen locations where prices can be almost half of that in the city centre.
John German, Managing Director - Residential Investments, Invesco Real Estate, said:
“This is a great opportunity to purchase a Class A asset within an attractive and accessible Greater Copenhagen location, a market that is underpinned by highly attractive dynamics. We look forward to working with 1927 Estate in the delivery of this opportunity and hope to be able to work with them on other projects. Vallensbæk is well located in an affordable suburban centre experiencing population growth. This asset is in line with our focus on investing in mid-market PRS developments in core European capital cities.”
Jacob Smergel-Krog from RUBIK Properties said: “We are delighted to be once again working with the team at Invesco Real Estate in realising this opportunity in Copenhagen. We believe there is a good opportunity for investors to capitalize on supply/demand imbalance for PRS and thus are actively searching for similar affordable residential development projects in Greater Copenhagen.”
Soren Hampen Kristensen, CEO - 1927 Estate said:
“We are very pleased to announce this transaction with a leading investor as Invesco Real Estate. Being able to deliver another major DGNB sustainability certified project in Denmark is something we are very proud of at 1927 Estate. With this transaction we continue to execute on our growth strategy focused on sustainability and digitisation.”