Schroder Real Estate has completed the acquisition of a six building office portfolio in the Copenhagen suburb of Valby from Europa Capital's Fund V, in partnership with Keystone Investment Management.
The financial terms of the transaction are confidential.
The portfolio, which comprises 24,445 m2 of multi-let office space, was acquired in December 2016. Since then Europa Capital and Keystone have increased the occupancy from 74% to 85% and net operating income has grown by almost 40%.
Europa Capital has made significant investment into Denmark and the Copenhagen area in recent years across multiple asset classes. Since 2015, Europa Capital has forward funded the delivery of over 921 units in Aarhus and Valby, of which the majority has since been sold.
Hugo Black, partner at Europa Capital, commented: 'This portfolio is a great example of our ability to execute a value-add strategy successfully. Back in 2016 this investment provided the opportunity to buy in at pricing levels that reflected low rental tones with significant vacancy, with the prospect of enhancing performance. A maturing urban location, Valby has benefited from a rippling out of occupier demand from Copenhagen’s CBD where vacancy is extremely low.'
He added: 'Having successfully completed our asset management strategy for the office portfolio, this sale completes our business plan and allows us to crystallise value and deliver strong returns for our investors.'