PATRIZIA acquires residential development project in Copenhagen
Patrizia Immobilien AG announces that it has entered into an agreement with MT Højgaard A/S on the acquisition of an 18,660 sq m residential development project in Copenhagen.
Patrizia Immobilien AG announces that it has entered into an agreement with MT Højgaard A/S on the acquisition of an 18,660 sq m residential development project in Copenhagen. The apartments are scheduled for completion in mid-2019 and will be located in area of Sydhavnen. The project comprises 16 properties including a total of 120 apartments and 56 town houses as well as several common and green areas. Approximately 17,500 sq m of the lettable area will be residential.
“We have seen increasing investor interest in the Danish residential sector and we have successfully completed investments in ten residential portfolios. Denmark remains a compelling investment market due to the continued population growth, especially in Copenhagen, which is on course to have grown by approximately18% by 2030, as well as the ongoing urbanisation and residential supply and demand imbalance,” says Rikke Lykke, Managing Director of the Nordic Region at PATRIZIA. “Thanks to the strong local knowledge of our team in Denmark, we have been able to identify attractive investment opportunities that tap into these key growth drivers which has enabled us to grow our assets under management in Denmark to more than EUR 1 billion.”
The development project has been acquired as a part of PATRIZIA’s buy-and-hold strategy and differs from PATRIZIA’s other investments in Denmark as this is the first project where the company acts as developer. Sydhavnen, the ‘South Harbour’ district, has benefited from regeneration and improvements to local infrastructure over recent years and, given its waterfront location and close proximity to the city centre, it is now one of the most sought-after residential areas in Copenhagen. Particularly popular with young families, the local population is set to triple from its current level of 5,000 and will exceed 15,000 by 2025.
This is PATRIZIA’s fourth purchase in Copenhagen’s Sydhavnen area following the acquisition in March this year of another residential development project. In April, the company also announced an acquisition of six properties in Denmark of which five (including a new development) are in Copenhagen and one in Aarhus.
“PATRIZIA has long been an active real estate investor in Copenhagen during which time there has been significant urban development. Therefore, it is also a natural step for us now to actively participate in this project and contribute to the development of one of the most attractively located new areas in Copenhagen and make it a desirable place to live for future Copenhageners,” says Rikke Lykke.
The development project is structured in six stages. The first projects are expected to commence in August 2017 and the last property is expected to be completed in September 2019.
PATRIZIA Immobilien AG:
PATRIZIA Immobilien AG has been active as an investment manager in the real estate market across 15 European countries for more than 30 years. PATRIZIA’s activities include the acquisition, management, repositioning and sale of residential and commercial real estate through its own licensed investment platforms. As one of the leading real estate investment companies in Europe, PATRIZIA operates as a respected business partner of large institutional investors and retail investors in all major European countries. Currently, the Company manages real estate assets worth more than EUR 19 billion, primarily as a portfolio manager and co-investor for insurance companies, pension fund institutions, sovereign funds, savings and cooperative banks. For further information, please visit: www.patrizia.ag.