M&G Real Estate has acquired a €250m residential scheme in Copenhagen for its European property fund.
The 56,000sqm Banehaverne project was developed and constructed through a joint venture between Urban Partners, AG Gruppen and Nordea Pension Ejendomme.
Completed last year, the development in Greater Copenhagen, which is located between Glostrup and Brøndby, comprises 667 homes across six buildings.
Thomas Riise-Jakobsen, head of Denmark for Urban Partners, said: “We are proud of what we have delivered together with AG Gruppen and Nordea Pension Ejendomme, and of contributing to the development of this area. The transaction also reflects the continued demand for high-quality residential assets in Greater Copenhagen, including well-connected suburban locations.”
Flemming Engelhardt, CEO Nordea Pension Ejendomme, said: “The collaboration between AG Gruppen, Urban Partners, and Nordea Pension Ejendomme has demonstrated that strong results are often achieved when different competencies, perspectives, and profiles are brought together.
“Each party has made a distinct contribution to both the process and the finished product, and ultimately the outcome speaks for itself. We would like to extend our sincere thanks to all parties involved for a strong and valuable collaboration.”
Bjarke Windeløv Graae, CEO at AG Gruppen, said: “When AG Gruppen began the initial discussions with the then-owners of the site nearly 10 years ago, we did so with a clear vision for the area – a vision we have realised through close and constructive collaboration with our highly valued joint venture partners, Urban Partners and Nordea Pension Ejendomme.”
Simon Ellis, manager of the M&G European Property Fund at M&G Real Estate, said: “This is a rare opportunity to acquire a high-quality residential asset at scale in one of Europe’s most attractive and supply-constrained city regions. It also shows the benefit of having a fund of real scale, with the capital to invest in large, best-in-class assets when the right opportunities arise.
“Copenhagen has the characteristics we look for: strong demand for rental homes, limited new supply and a clear focus on sustainability.”
Ellis added that the deal takes the fund’s living exposure above 25% and builds on more than €650m of residential purchases completed or agreed across Europe over the past six months.
Robert Göthe, head of Nordics at M&G Real Estate, said: “Banehaverne is exactly the kind of high-quality, sustainable residential asset we want to add to our Nordics portfolio. Greater Copenhagen has a shortage of new rental homes, which makes this an attractive market for long-term investors.“
Göthe added that across the region, M&G Real Estate now manages over €1bn in logistics, living, retail and office assets, giving the fund a “broad presence in the Nordics and taking its exposure to these countries to around 18%”.
To read the latest IPE Real Assets magazine click here.
