KKR buys Copenhagen student housing portfolio from TPG Angelo Gordon

KKR has acquired a purpose-built student accommodation (PBSA) portfolio in Greater Copenhagen from fellow US private equity firm TPG Angelo Gordon.

The three assets, encompassing 494 units, were completed between 2020 and 2023 and have A-rated energy-performance certificates.

KKR is investing through its European core-plus real estate strategy, which it says “focuses on thematic investments in high quality, substantially stabilised assets with long-term growth potential”.

Danish residential specialist Keystone will continue as the local operating partner and local operator The Mark will continue to provide property management.

Alexander Thams, director and head of Nordics real estate at KKR, said: “We are delighted to announce this acquisition which builds on our ambitions in Nordic real estate, following our recent investments in Finland, Denmark and Sweden.

“The PBSA assets in Copenhagen are significantly high quality and well amenitised to uniquely serve the strong student population in the city. We look forward to continuing to build a sizeable housing portfolio in the coming years, capitalising on Copenhagen’s favourable supply-and-demand dynamics.”

Ian Williamson, head of core-plus real estate in Europe at KKR, said: “This transaction is a great addition to KKR’s European real estate platform and our core-plus strategy, where we are targeting attractive structural dynamics and strong market trends.

“PBSA is an important part of our core-plus strategy, and this acquisition’s high-quality and modern characteristics aligns well with the demand in Copenhagen, a significant university city which is structurally undersupplied.”

Thomas Mølhave Jacobsen, Partner and CIO at Keystone, further added: “We are very pleased for the opportunity to work with KKR on optimizing this well-located asset. PBSA requires a meticulous focus on letting processes and managing amenities, a challenge that aligns perfectly with our expertise.

“Moreover, the location presents promising opportunities, mirroring our conviction in a number of local areas in Greater Copenhagen at present.”

The transaction builds on KKR’s strong track record in residential real estate and local expertise in the Nordic region, a key growth market for KKR’s European Real Estate platform. KKR’s recent Nordic Real Estate investments include the acquisition of a high-quality rental residential portfolio in both Finland and Denmark, as well as the acquisition of a prime last-mile logistics property in Sweden. Vertically, KKR’s European PBSA portfolio further includes assets across the UK.

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