Deutsche Finance International (DFI) has acquired a €100m development in Copenhagen on behalf of a newly created micro-living real estate investment strategy in Denmark.
The pan-European private equity real estate investor said the Danish micro-living strategy, which targets a €300m portfolio, has agreed to forward fund the 350 rental unit project scheduled for completion in the second half of 2024.
The strategy will target purpose-built small, self-contained homes for rent.
DFI’s vice-president Francesco Orofino the Copenhagen acquisition kickstarts the micro-living strategy.
Orofino said: “The Danish living sector benefits from significant tailwinds, including a substantial undersupply and a structural shift in favour of rental housing versus home ownership, driven by stricter mortgage regulatory requirements and affordability constraints that are at the front of potential occupiers’ minds in the current economic environment.”
Paul Nearchou, managing director at DFI, said: “The current market backdrop and likely associated re-pricing presents us with an exciting opportunity to capitalise on the market cycle and utilise our experience investing in the Danish residential sector to deliver attractive returns on behalf of our investors.”
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