Located in Ishøj, a Greater Copenhagen location south west of the city centre, the turnkey residential project will consist of 173 two-, three- and four-bedroom apartments with an average apartment size of 80 square metres across six buildings ranging from three to six floors. There will also be 178 car parking spaces. The development, which will be certified DGNB Gold and connect to a municipal heating network, is a part of a larger conversion of a former industrial district into a modern and vibrant residential neighbourhood.
Copenhagen’s residential sector remains one of the most attractive in Europe. Residential assets are highly sought after, accounting for 56% of total property investment market in Denmark in 2021, with demand supported by sustained population growth and a relatively low supply of new, ESG-centric properties.
Ishøj is already a strong suburban commuter centre with good population growth and a current housing shortage. The new Hovedstadens Light Rail system is scheduled to run by 2025 and a new station will open approx. 1 km from the site.
Invesco Real Estate has significantly increased its allocation to Copenhagen’s residential market over the past two years across a range of strategies. In June, it announced the forward purchase of a 25,000 sqm development in Ballerup, the fifth residential transaction in Greater Copenhagen for the firm over the previous 18 months.
John German, Managing Director – Residential Investments, Invesco Real Estate, said:
“We’re delighted to be expanding our relationship with a key German client and once again be utilising our very strong knowledge of the Copenhagen market to identify a very attractive, long-term investment opportunity. This is the second investment that Invesco has secured in Ishøj, and it is again going to be developed by Becker/NIelsen ApS. We continue to see the benefits of working with trusted partners in further expanding our Danish residential portfolio and we look forward to seeing the successful delivery of this investment in Q2 2024.”
Jacob Smergel-Krog from RUBIK Properties said:
“We are pleased to once again be working with the team at Invesco Real Estate and supporting them in acquiring this development project in Denmark. Residential as an asset class continues to offer attractive yields and our focus remains on tenant-centric assets and prime locations where we see the highest demand.”
Thomas Fredborg Nielsen, CEO – Becker/Nielsen, said:
“This is our second transaction with Invesco Real Estate and Rubik Properties, and we are pleased to be able to continue this already established collaboration. We aim to extend this further in the future by providing additional attractive developed real estate investment opportunities in the Greater Copenhagen area.”
The buyer's advisor was Accura, Niras, KPMG, TREAF and Colliers. The seller's advisers were RED and Lundgrens.