Pan-European real estate investment manager Europa Capital, in partnership with Copenhagen-based Keystone Investment Management, has secured a pipeline of 150 residential units in the Amager area of the Danish capital.
Financial details were not disclosed.
The deal was struck on behalf of Europa Capital's core diversified income strategy with Danish developer, Gefion Group, by way of a forward commitment.
The development, comprising 150 rental units across three buildings, will be delivered in three phases between October 2020 and March 2021 and is located in the Øresund region of Copenhagen.
Andy Watson, partner and fund manager at Europa Capital, commented: 'This will be the first investment in the residential sector for our core strategy, building on Europa Capital’s extensive experience in this market. Where the demographics make sense, we will continue to target further residential opportunities in major northern European cities with liquid investment markets.'
According to Europa Capital, the firm established a core diversified income strategy with seed investment from its principal shareholder, Mitsubishi Estate, last year and since then has increased its focus on this area of the market. Upon completion of these properties, it will have invested over €340 mln of equity for the strategy in a portfolio generating a gross annual rental income of approximately €18 mln.
The portfolio also includes eight Dutch logistics assets in the corridor between the Port of Rotterdam and Venlo on the Dutch and German border and two office buildings in Paris and Munich, which have now been managed to full occupancy.
Europa Capital said it was mainly focusing on residential for rent and e-commerce-led logistics at this time.
Since 2012, Europa Capital has acquired, on behalf of a range of investment products, a total of 7,000 beds in residential and student markets across Europe, totalling circa €1.2 bn of investment.
