The allure of institutional-grade residential property in Denmark has been underlined by the level of interest shown in two assets in Copenhagen that have drawn multiple bids including from overseas investors.
Gertrudehus and Emmahus in the Ørestad part of the capital city have been put on the block by pension funds, SamPension and MP Pension, and are said to have attracted more than 10 bids including from overseas parties. The guide price is around €140 mln, according to several sources, reflecting a yield below 3.5%.
The properties were developed by Solstra Capital Partners and together are known as the “Gemini” portfolio.
Ørestad is a developing area of Copenhagen located on the island of Amager – the most densely populated island in the country.
The area has rail links helping people reach Copenhagen’s airport in just 6 minutes, while Copenhagen Central Station is seven minutes away, and Sweden’s Malmo Central Station can be arrived at in 29 minutes. Those marketing the are suggest Ørestad is becoming the "largest crossroad in Scandinavia".
According to a 2000 Colliers report, once Ørestad is fully developed in 15 years, the district will house 3.1 mln m2 of floor space. Commercial users will account for 50%, residential 40%, and the rest will be attributed to other retail trade and institutions. Such an area will translate into 80,000 workplaces and more than 25,000 residents. Currently, 13,000 people live there.
In 2020, the Danish property market's transaction volume dropped, but the decline does not reflect a lack of demand. Competition from domestic and foreign investors has intensified for most property types, including residential.
In December last year, PropertyEU reported how the biggest residential sale in the Nordics in 2020 took place in Denmark. Heimstaden bought a residential portfolio spread across the country for €1.6 bn.
More recently, Europa Capital teamed up with Copenhagen's Keystone Investment Management to acquire 178 homes for €88 mln in the Øresund region of Amager. As reported earlier this month, in that instance developer Gefion was the seller. The purchase was made on behalf of Europa’s Diversified Income Fund.
Copenhagen is seen as a safe haven during the uncertainly of covid-19. That is according to Morten Gustafson, director at Catella Corporate Finance, which is advising Denmark’s state-owned national rail operator, DSB and Danica Pension, on a joint venture to undertake a 25,000 m2 mixed use project next to the city’s main station that will incorporate living space.
Colliers is advising on Gemini.
