A fund established by Deutsche Finance International (DFI), the private equity investment platform specialised in alternative real estate sectors, has acquired a newly opened 228-unit property in Copenhagen to seed a platform of purpose-built student accommodation in Denmark.
The terms of the investment are not being disclosed.
DFI European Value-Add Fund acquired the 7,387 m2 student residential property in Valby, an inner suburb south west of central Copenhagen, in an off-market transaction from Danish property investment, management and development company Koncenton.
Gavin Neilan, founding partner of DFI, commented: 'This acquisition illustrates how we identify scalable investment themes in alternative real estate sectors and source opportunities. Denmark’s fragmented student housing market offers compelling fundamentals: a robust economy, good universities, rising student numbers and widespread undersupply of accommodation. We’re looking to build a platform of high-quality assets to serve the pent-up demand.'
The Danish property is the fourth investment to date by the fund. Its other assets are the Olympia London Exhibition Centre, a Spanish residential rental platform and another 386-unit student housing asset in Canterbury, England.
Paul Nearchou, investment director of DFI, said: 'Our goal is to create a dynamic student housing brand in the Danish market and to scale it up rapidly by adding more purpose-built student accommodation, with each asset providing 75 to 500 beds. We have already established a strong pipeline and are focusing on the markets of Copenhagen, Aarhus and Odense.'
DFI was advised by Plesner, E&Y, Langham Hall Norton Rose and Deloitte.