Heimstaden has continued the Swedish advance into Copenhagen's real estate market with the acquisition of 150 condominiums, writes Cormac Mac Ruairi, Deals Editor and Nordics specialist at PropertyEU.
The residential units are spread across three buildings in the Frederiksberg district of Copenhagen.
Heimstaden, a Stockholm-listed real estate company acquired the assets, acting through its Danish business, from a fund managed by Nordic Real Estate Partners (NREP) and Denmark's Northinvest for DKK 329 mln (€44 mln). The total living space is 9,500 m2 with an occupancy rate approaching 100%. The gross rent amounts to DKK 12 mln per annum.
Heimstaden said that the acquisition will be financed partly with cash and partly through mortgage loans of DKK 185 mln. 'We are adding additional well-located housing units in the Danish capital to our portfolio. Following the acquisition, we own 1,100 condominiums and believe in a continued positive market development in Copenhagen,' said Heimstaden deputy CEO Magnus Nordholm.
This was the latest in a series of recent investments by Swedish companies in Copenhagen's real estate sector.
Earlier in October Niam, the real estate private equity firm in Northern Europe, acquired a fully let office property in the Danish capital for about €28 mln. Around the same time Stockholm-listed investor-owner Akelius Residential Property entered the Danish market by buying 216 apartments in Copenhagen, which it describes as 'the Berlin of Scandinavia'.
Akelius paid DKK 321 mln to acquire the portfolio from Helsinki-headquartered Capman Nordic Real Estate fund. The homes are located in three properties, built in 1930 and 1884, in Christianshavn, Copenhagen V and Österbro – popular areas in central Copenhagen.
'Copenhagen is the Berlin of Scandinavia. Both cities have an atmosphere which is very appealing. Hopefully we can grow significantly in Copenhagen,' said Akelius CEO Pål Ahlsén.
Heinstaden was also active in Copenhagen in August when it agreed to acquire 114 apartments from Niam for DKK 422 mln. Niam had acquired the 13,800 m2 portfolio, spread across four locations in the greater Copenhagen area, in 2013. The transaction follows the sale of another residential portfolio of 436 units in Copenhagen agreed between the parties earlier this year.
Other international investors are also expanding their holdings in Copenhagen. This group includes CBRE Global Investment Partners (CBRE GIP) which acquired a former military barracks which is now the 463-bed Sølvgade student accommodation complex. The investment volume was not disclosed.
