Patrizia Immobilien has acquired a turnkey development project in Denmark for one of its pan-European residential funds.

The fund manager said it bought the Library Park project in Aarhus for Patrizia Europa Wohnen I for an undisclosed sum.

The turnkey handover is scheduled for mid-2020.

Once completed, the Library Park site will feature 85 residential units, a 508-bed boutique hotel and two to four retail units – a total of around 11,800sqm of lettable space spread across two properties – plus 72 parking spaces, 60 of which are underground.

Peter Helfrich, Patrizia’s regional head in North West Europe, said: “This investment was the opportunity to acquire a new, high-quality set of properties which will enable our clients to benefit from Aarhus’s strong rental housing market, characterised by excess demand, reflected in a very low to non-existent vacancy rate.

“In addition, demand for rooms in the city’s hotel market has continued to increase over recent years while a recent feasibility study concluded that there is a need for a boutique hotel in Aarhus. All in all this is an investment that will deliver long-term reward.”

This acquisition is the latest in a series of core and core-plus purchases made across Europe on behalf of the Europa Wohnen I fund, which has a target of €500m and has a current volume in excess of €300m, Patrizia said.