Europa Capital is buying an 88-apartment senior living project in Denmark on behalf of its latest value add fund.

The European real estate investment manager said it has agreed to buy Kanalgaden 3 in Copenhagen from Gefion Group in a forward funding deal on behalf of Europa Fund VI.

Financial details were undisclosed.

Located in Albertslund, Kanalgaden 3 is a former office building which is being refurbished into senior living accommodation and is expected to complete in January 2023.

Jason Oram, partner and fund manager at Europa Capital, said: “The occupier demand for senior living accommodation in Copenhagen is supported by an ageing population with the rate of inhabitants aged over the age of 65 expected to increase to 25% by 2030.

“Although our target occupier is not limited to residents of this age bracket, the increase in this proportion of society is not matched by a sufficient pipeline of purpose built accommodation, presenting an opportunity.”

Europa said the acquisition is the second investment for its Nordic living platform, in joint venture with Keystone Investment Management, following last year’s acquisition of a senior living development in Helsingør, Denmark.

Oram said the latest acquisition grows the number of units in Europa’s senior living pipeline to over 200 units, and “we continue to monitor the market for opportunities which match our return targets for our investors, whilst also building on our existing expertise in the living sector”.

Europa Capital and its partner were advised by Accura, CBRE and Emcon. Gefion Group was advised by Cushman & Wakefield RED and Bruun & Hjejle.

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