Global asset management firm Invesco’s real estate investment business has acquired the exclusive rights to a second new development of prime residential Private Rented Sector (PRS) assets in Skovlunde, Greater Copenhagen from real estate developer 1927 Estate.
This transaction brings to 464 the number of units Invesco Real Estate has recently invested in on behalf of its strategic opportunities investment programme in Denmark over the past few weeks. Financial details were kept confidential.
The acquisition has been secured in cooperation with Copenhagen-based Rubik Properties, a major operating partner in Denmark and an established partner for Invesco Real Estate.
The investment, Torvevej, consists of 106 new-build apartments situated on the corner of Ballerup Boulevard and Torvevej, with an average size of 70 m2 extending to 7,468 m2; a further 6,059 m2, which will comprise an additional 18 town houses with an average size of 133 m2 and 43 duplex apartments with an average of 84 m2 in addition to 1 small apartment of 44 m2, all constructed over three and four floors. Finally, the investment will have 108 allocated parking spaces.
The entire project will be delivered on a turnkey basis, with completion expected in Q1 2023.
High-quality residential assets in Copenhagen continue to command investor attention with 2021 seeing some of the highest levels of investment in the City. In IRE’s view the growing unaffordability in Copenhagen’s centre - where rents are the seventh most expensive in Europe - coupled with strong regulation on home buyers, are forecast to increase rental demand in Greater Copenhagen locations where prices can be almost half of that in the city centre.
‘We are delighted to announce the purchase of another Class A asset within an attractive and accessible Greater Copenhagen location,’ said John German, managing director - Residential Investments, Invesco Real Estate. ‘This is our second transaction with 1927 Estate, and we look forward to our continued working relationship. Our objective is to partner with developers who can offer multiple projects in any given market and in 1927 Estate we have found a counterparty who is able to offer multiple opportunities in our target investment areas.’
Soren Hampen Kristensen, CEO - 1927 Estate said: ‘To complete the second transaction with Invesco Real Estate and Rubik Properties within a few weeks is a true acknowledgement of our effort putting sustainability and digitalisation on the agenda. We look forward to continuing our cooperation with Invesco Real Estate and RUBIK Properties who share our ambition regarding sustainable DGNB certified projects supported by long term investments in technology.’