PATRIZIA acquires turnkey project in high-growth city of Aarhus
Attractive, long-term investment in Denmark’s second largest city
- Two properties comprising residential units, boutique hotel, retail spaces and car-parking
- City centre location, an area of limited supply of new residential real estate
- Population growth of more than 9% expected in Aarhus over the next ten years
Augsburg/Aarhus, 25 June 2018. PATRIZIA Immobilien AG announces that it has acquired the ‘Library Park’ project in Aarhus, Denmark, for one of its pan-European residential funds, ‘PATRIZIA Europa Wohnen I’. The purchase price will not be disclosed. The project will be handed over turnkey in mid-2020.
Peter Helfrich, PATRIZIA’s Regional Head North West Europe, commented: “This investment was the opportunity to acquire a new, high-quality set of properties which will enable our clients to benefit from Aarhus’s strong rental housing market, characterised by excess demand, reflected in a very low to non-existent vacancy rate. In addition, demand for rooms in the city’s hotel market has continued to increase over recent years while a recent feasibility study concluded that there is a need for a boutique hotel in Aarhus. All in all this is an investment that will deliver long-term reward.”
This acquisition is the latest in a series of core and core-plus purchases made across Europe on behalf of the Europa Wohnen I fund, which has a target of EUR 500m and has a current volume in excess of EUR 300m. Recent acquisitions include a 29-unit residential property in Madrid, the ‘Marble City’ portfolio together with another the residential development acquisition in Denmark’s capital Copenhagen, a residential development in The Hague in the Netherlands, and the Honey Park acquisition in the Greater Dublin area of the Republic of Ireland.
Once completed, the Library Park site will feature 85 residential units, a 508-bed boutique hotel and two to four retail units – a total of around 11,800 sq m of lettable space spread across two properties – plus 72 parking spaces, 60 of which are underground. It is conveniently located in the city centre of Aarhus, close to its numerous shopping and leisure activities, and sits adjacent to the Aarhus Canal, which runs through the city serving as a recreational and entertainment destination.
Aarhus, with 270,000 inhabitants, is the second largest city in Denmark after Copenhagen. As many as 800,000 people live in the Aarhus metropolitan area, yet it is Aarhus’s status as the economic, cultural and political centre in the region which attracts most of the region’s population growth – expected to exceed 9% over the next ten years.
PATRIZIA Immobilien AG:
PATRIZIA Immobilien AG has been active as an investment manager in the real estate market across Europe 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 a global partner for pan-European real estate investment, PATRIZIA operates as a respected business partner of large institutional investors and retail investors in all major European countries. PATRIZIA manages almost EUR 40 billion of real estate assets, primarily as an investment manager for insurance companies, pension fund institutions, sovereign funds, savings and cooperative banks and as co-investor. For further information, please visit: www.patrizia.ag.
Group Head of Corporate Communications
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