A joint venture between global asset manager Aberdeen Standard Investments (ASI) and Nordic micro-living and student housing specialist Ailon Group has announced plans to deliver 5,000 residential units in the next three years.
Financial details were not disclosed.
The partnership, which was established in 2017, now has over 2,000 units under planning or development, with plans for another 3,000 units over the next three years, ASI said. It was formed to create 'a scalable platform', according to the investor, and one of the first of its kind in the Nordics.
'Space in the best Nordic cities is really at a premium and micro living is a good way for us to provide quality homes that people can afford, with facilities that people want, and in places where people want to live,' said Christian Schjødt-Eriksen, fund manager of the Aberdeen European residential opportunities fund (AEROF), which invests in the joint venture.
'Micro living is a very new concept for the Nordics but, with the popularity of cities in the region only set to increase, it’s one that is here to stay. As such, the platform that we’ve created has real potential to grow,' Schjødt-Eriksen added.
According to ASI, the projects are a mix of new build and conversion schemes, focused on key Nordic cities that have growing and stable populations.
The schemes will target students, young professionals and corporate residents and will have access to study/co-working space and other social areas, with target completion of 2020-21. The assets will then be managed directly by the joint venture’s integrated operating platform.
'Micro-living has become an integral part of the overall asset allocation for institutional investors in Europe and there is a huge demand for this product in the Nordics,' confirmed Andrew Dawson, founding partner of Ailon.
'The demand for living small is getting bigger and bigger. This is an effect of rising rents in large cities and an increase in autonomous lifestyles of young people,' concluded Jacob Cronstedt, founding partner of Ailon.