PATRIZIA acquires 177 residential units in Copenhagen
PATRIZIA Immobilien AG has acquired a residential turn-key project in central Copenhagen. The acquisition comprise 177 residential units with a total space of approximately 17,000 square metres along with 90 parking spaces which are currently being built on the Teglholmen Peninsula in the South Harbour of the Danish capital. Completion is planned for the end of 2017.
“Due to the attractive location in the South Harbour, which is currently and during the next years turned into a modern residential area, we expect an increased interest for such newly built residential properties,” says Rikke Lykke, Managing Director of PATRIZIA Nordic Region. The sellers are the Danish pension fund “PenSam”, the Sjælsø Management Company, and the project developer KPC.
The acquisition was made on behalf of the Bayerische Versorgungskammer (BVK). The BVK is the biggest public-law pension fund in Germany at present, managing the business of twelve professional and local community old-age pension facilities with 2.1 million insured persons and pensioners. It manages a capital investment volume of approximately EUR 66 billion for all facilities together at present (book value).
The property consists of 177 apartments with two to five rooms and areas between 61 and 152 square metres. The residential area is located only two kilometres from the city centre and is considered one of the most popular locations in Copenhagen not just because of its proximity to the city, but also because of its location by the water and the characteristic canals. A connection of this area to the Copenhagen metro system is planned for 2023.
The high demand for residential space in Copenhagen combined with a comparably low supply indicates potential for increasing prices for rent and residential space. Due to the attractive location in the South Harbour, which is scheduled to be converted into a modern residential area in the next few years, increased demand is expected for residential space including this project. Approximately 5,000 people, and particularly young families, already call the South Harbour their home. Experts expect this figure to increase to over 15,000 by 2025.
Last year, PATRIZIA purchased a residential turn-key project in the same area on the Teglholmen Peninsula. That project included 127 residential units and an area of approx. 13,000 square meters. It is expected to be completed this year. This property was recently included in a PATRIZIA real estate fund for private investors and it is thus the first real estate fund for private investors investing in residential property in Denmark. Both transactions, as well as the subsequent property and asset management, are managed by the company’s subsidiary PATRIZIA Denmark.