Invesco Real Estate has purchased a 25,000 m2 Class A residential development in Ballerup, Denmark, due for completion in Q4 2023.
Located at Baltorpvej on the north-western edge of Greater Copenhagen, it will consist of three self-contained buildings, each with around 110 units spread across 8,500 m2 at an average size per unit of 76 m2.
The development is set in an attractive micro location next to the Ballerup Centret shopping centre and main train station, while a new light rail line will further improve connectivity from 2025.
It was secured in cooperation with Copenhagen-based real estate operating partner RUBIK Properties and will be the third joint development with FB Gruppen, following the successful delivery of two residential buildings in Valby.
John German, managing director - Residential Investments, Invesco Real Estate, said: ‘The Danish – and wider European – BtR sector continues to have a highly attractive, long term investment profile and we’re delighted to be once again working with both FB Gruppen and the team at RUBIK Properties and expanding our residential allocation to Greater Copenhagen. Including the asset in Ballerup, we will have 895 units across the city over 70,000 m2 by end-of 2023, making us one of the largest international investors in the local market.’
Jacob Smergel-Krog from RUBIK Properties commented: ‘The residential sector in Copenhagen offers high risk-adjusted returns in a market trading at attractive yields compared to other major European cities. Invesco Real Estate’s continued investment in creating best-in-class assets illustrates the compelling dynamics driving the market.’
Hans-Bo Hyldig, CEO at FB Gruppen, added: ‘We are pleased once again to do business with both Invesco and RUBIK properties. The negotiation process exploited strong synergies from our previous transactions at Grønttorvet and we are always very happy when strong and professional partners express interest in other projects in our portfolio.’
The Ballerup residential development will meet high technical and sustainability standards, including DGNB Gold accreditation.
This is the company’s fifth transaction in the mid-market residential sector in Greater Copenhagen in the past 18 months.
Other assets include Mejsehaven in Ishøj and Dagmarhaven in Vallensbæk, a turnkey project that will consist of 164 apartments over two buildings of between two and eight floors, totalling 11,220 m2, due for completion by December.
Due to the high costs in the city’s centre and strong regulation on home buyers, Invesco Real Estate expects a further increase in rental demand in suburban locations where prices can be almost half of those in more central locations.
