German fund manager DWS has acquired a landmark residential building in Copenhagen from a vehicle backed by two Danish pension funds.
The financial details of the transaction were not disclosed.
Located in the new Bellakvarter district in Ørestaden, Denmark, the Bella Tower includes a five-storey base and a 19-storey tower, consisting of 199 residential units and 16,656 m2 of gross leasable area.
The property has been developed by Solstra Development on behalf of Bellakvarter, a company owned by Danish pension funds Sampension (66%) and AkademikerPension (33%).
The remainder of the residential properties is being finalised and will include retail options such as Føtex Food, Netto, several cafés and restaurants, a pharmacy and other convenience stores.
Henrik Olejasz Larsen, CIO at Sampension said: ‘We have sold a prime real estate product which has proven itself by being fully let, in what is becoming one of the most attractive residential areas in Copenhagen. The whole development around “Bellakvarter” is exceptional, with its central location and high attraction rate, which has created a significant investment potential.’
Jens Munch Holst, CEO at AkademikerPension, commented: ‘We became part of the project because we considered it to be a good investment. But also, because we wanted to take part in the development of an attractive new area of Copenhagen. It is enormously satisfying for us that we have succeeded in both parts.’
Martin Weikamp, head of real estate transactions for the Nordics at DWS, added: ‘In spite of the notable shift in the European economic and geopolitical environment over the first half of 2022, we strongly believe the fundamentals behind the Copenhagen residential market remain supportive”, said “We continue to look for attractive investment opportunities in the Danish residential market, including development projects and assets in need of larger refurbishments to achieve attractive returns for our investors.’
The Bellakvarter district is a German Sustainable Business Council (DGNB) Gold-certified development area.
It is located within walking distance of Denmark’s largest shopping mall (Field’s), Scandinavia’s largest convention centre (Bella Center Copenhagen) and the Bella Center metro station, providing swift access to the Copenhagen city centre and Copenhagen Airport.
Colliers and law firm Gorrissen Federspiel represented Bellakvarter during the acquisition.