IRE diversifies resi portfolio with first Danish investment

Invesco Real Estate (IRE) has announced its entry into the Danish residential market with the purchase of 191 apartments, including 90 parking spaces, in Grønttorvet in Valby, an established residential submarket in West Copenhagen.

The site, which Invesco acquired for DDK 520 mln (€60 mln) is being developed as part of a larger regeneration scheme in the wider Grønttorvet area.

Grønttorvet 8 marks the first asset Invesco has acquired in Denmark, adding to existing investments that have been made in Germany, Spain, Holland, Czech Republic and the United Kingdom, bringing Invesco’s pan-European residential footprint to €2 bn. This Danish investment reflects the firm’s intention to widen the scope of its pan-European residential portfolio.

The transaction was made on behalf of one of Invesco’s German separate account clients for its actively managed portfolio.

IRE was advised by with its local partner Rubik properties on the deal.

'We continue to see a lot of opportunity in the European residential space, and we’re really pleased to have acquired this asset in a new market for us, as part of our wider efforts to broaden our European residential footprint,' said John German, managing director of residential investments at Invesco.

'Copenhagen’s rental market has grown at around 4% annually over the past 10 years, and we expect future demand will continue to exceed the supply of modern residential products, so anticipate upward pressures on rental levels that will contribute to stable and growing long-term income.'

The site is being developed by the FB Gruppen, which is transforming the old Grønttorv (wholesale area for fruit and vegetables) into a 'green residential town', with a mix of for rent, for sale residential buildings and student accommodation. Completion of the investment is expected in December 2020.

Tobias Simon, senior director – European Fund Management at Invesco added: 'The investment in Project Grønttorvet represents an exciting opportunity for our client to participate in the transformational regeneration going on in an already-established residential market. The asset is especially well positioned to attract families looking to move a little further out of the city, while still retaining easy access to the centre.'

When complete, the full Grønttorvet development will comprise 2,300 homes by 2021, and will include streetscapes, a central garden with underground parking, rooftop amenities and individual courtyards, and also a supermarket, kindergarten and school.

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