The acquisition, set to complete in three stages to Q4 2023, is the fifth residential transaction in Greater Copenhagen for the firm in the past 18 months. It was acquired on behalf of Invesco Real Estate’s strategic opportunities investment programme and secured in cooperation with Copenhagen-based RUBIK Properties, a leading real estate operating partner in Denmark.
The development in Ballerup, Baltorpvej, will comprise three self-contained buildings, each with around 110 units spread across 8,500 sqm at an average size per unit of 76 sqm. As with Invesco Real Estate’s other assets in Copenhagen, the buildings will meet high technical and sustainability standards, including DGNB Gold accreditation.
The Ballerup development will be the third that Invesco Real Estate has concluded with well-respected developer FB Gruppen, following the successful delivery of two residential buildings in FB Gruppen’s redevelopment of Grønttorv in Valby.
The development is located in Ballerup at Baltorpvej on the north western edge of Greater Copenhagen at and is set in an attractive micro location next to the Ballerup Centret shopping centre and main train station. A new light rail line will further improve the local public infrastructure and connectivity when brought into use in 2025.
Other assets in Invesco Real Estate’s Greater Copenhagen portfolio include “Mejsehaven” in Ishøj and “Dagmarhaven” in Vallensbæk. “Dagmarhaven“consists of 164 apartments over two buildings of between two and eight floors, totalling 11,220 sqm. The project, to be delivered on a turnkey basis, is expected to complete in December this year.
High-quality residential assets in Copenhagen continue to be highly sought after. Growing unaffordability in the city’s centre coupled with strong regulation on home buyers are expected to further increase rental demand in suburban locations where prices can be almost half of those in more central locations.
John German, Managing Director - Residential Investments, Invesco Real Estate, said:
“The Danish – and wider European – BtR sector continues to have a highly attractive, long term investment profile and we’re delighted to be once again working with both FB Gruppen and the team at RUBIK Properties and expanding our residential allocation to Greater Copenhagen. Including the asset in Ballerup, we will have 895 units across the city over 70,000 sqm by end-of 2023, making us one of the largest international investors in the local market.”
Jacob Smergel-Krog from RUBIK Properties said:
“The residential sector in Copenhagen offers high risk-adjusted returns in a market trading at attractive yields compared to other major European cities. Invesco Real Estate’s continued investment in creating best-in-class assets illustrates the compelling dynamics driving the market.”
“We are pleased once again to do business with both Invesco and RUBIK properties. The negotiation process exploited strong synergies from our previous transactions at Grønttorvet and we are always very happy when strong and professional partners express interest in other projects in our portfolio,” said Hans-Bo Hyldig, CEO at FB Gruppen.