One asset has already been acquired and additional acquisitions are currently being considered. “We believe this mandate is recognition of our specialist expertise and the strong track record that PATRIZIA offers across Europe as a business partner, where we can offer the best risk diversification to our clients,” says Jochen Reith, Group Head of Institutional Clients, DACH Region (German, Austria, Switzerland), for PATRIZIA.
PATRIZIA has already made good progress, having acquired its first residential property on behalf of the mandate, in Denmark. The turnkey development is located an attractive area in the south of Copenhagen. The property is situated in a newly developed area close to the Amager Beach Park at Öresund, close to the city center in an area that is characterised by modern architecture, parks, and the Amager Beach Park. “The Amager Beach Park is a very successful public development project, which offers excellent public transport links into the city center. We believe this will ensure that there is a strong demand for residential property in the area, facilitating a positive outlook for capital growth,” explains Rikke Lykke, Managing Director, PATRIZIA Nordic Region.
The residential complex comprise a number of buildings ranging from three to six floors providing a lettable area of approximately 7,100 square meters which will deliver 68 residential units, one commercial unit, and 34 parking spaces. The plans call for modern and high-quality facilities as well as at least one balcony per apartment. Kitchens and bathrooms will be pre-installed and offer high quality fixtures and fittings. All stairwells will have elevators. Completion is scheduled for Q4 2017. The seller is a consortium of investors. The parties have agreed to keep the purchase price confidential.
“The residential market in Copenhagen is characterised by strong excess demand for residential space. Furthermore, the population of Copenhagen is expected to increase by around 24% by 2030,” Lykke explains. Moreover, with a low level of construction and strong demand for residential space in Copenhagen, prices are expected to remain stable. The prospects for the residential market are also supported by an improving economy, supported by a decreasing unemployment rate, increasing consumer confidence, a normalisation of private consumption, economic growth, lower inflation and historically low mortgages rates.