Invesco Real Estate has agreed to forward-fund a development project in Denmark’s capital on behalf of one of its German separate account clients.
The global property manager said it will fund the development of the 124 apartments in the wider development known as Bryggens Bastion, which is situated in Islands Brygge area in central Copenhagen.
The Bryggens Bastion project is expected to deliver a mix of residential, student housing, micro-apartments and commercial in ten buildings once completed.
Bryggens Bastion is being developed by Bach Gruppen and is due for delivery in 2021.
The latest deal is Invesco’s second Danish residential transaction. Last month, Invesco paid DDK520m (€60m) to acquire 191 apartments being developed in Grønttorvet in Valby, a residential submarket in West Copenhagen.
With Bryggens Bastion, Invesco said it is adding its 30th asset to its pan-European residential portfolio which has seen investments in seven countries.
John German, managing director of residential investments at Invesco, said: “We are seeing an increasing demand from institutional investors for high quality and income-producing residential projects in Europe and are looking forward to further expand in this sector.
“I’m really pleased we’ve been able to secure a second Danish residential asset so soon after announcing Grønttorvet 8 and this is a real testament to the quality and hard work of our team when it comes to sourcing and executing off-market deals.”
William Ertz, a senior director responsible for fund management at Invesco, said: ”Our client has tasked us with identifying assets that deliver stable and predictable income in central locations, and Bryggens Bastion really fits the bill: it has a history of near-permanent occupancy in a location where vacancy rates are very low, while potential yield compression could provide further upside as the asset stabilises.
“The fact that this is both the first residential and the first Danish investment for this mandate also serves to broaden the investment universe of the portfolio.”