NREP fund buys 700 apartments in largest Danish deal so far in 2014

A fund advised by investment manager Nordic Real Estate Partners (NREP) has acquired a portfolio of 700 apartments in the largest real estate deal in Denmark so far this year.

The financial details of the acquisition from pension fund PensionDanmark were not disclosed. But Catella in Copenhagen said it acted as exclusive financial advisor for PensionDanmark in largest real estate transaction in Denmark in 2014.

The 73,000 m2 portfolio consists of six properties in Copenhagen and two additional properties in Vejle and Århus, cities benefitting from strong demographic growth and urbanisation trends. The units were built in prime locations during the period 2006–2013.

'Copenhagen is one of the fastest growing capital cities in Europe and supply has on average for the last decade met only a quarter of the annual increase in demand. This attractive supply/demand imbalance is coupled with the fact that absolute price levels and the housing burden are relatively low compared with many other European markets,' said Rune Kock, NREP’s head of transactions in Denmark.

He added: 'Copenhagen and the strongest growing secondary cities are attractive investment areas and we are confident that they will continue to benefit from the current economic and demographic growth trends.'

Within the residential sector, NREP has so far focused primarily on developments. 'This was a unique opportunity to acquire a large portfolio of consistently well located properties that provide both stable income as well as the potential for NREP to add value through hands on asset management,' Kock said.

THE FUND
NREP Nordic Strategies Fund is a strategy-driven value-add fund that is focused on modern prime logistics, 'necessity-driven' retail and residential properties in large, established growing Nordic cities, replicating the strategies of prior NREP funds. The fund has received initial commitments of €167 mln.

'NREP Nordic Strategies Fund has now secured transactions of more than €350 mln within two months of its first closing and this residential investment complements the fund’s existing portfolio of retail and logistics properties in line with the investment strategy,' said Rasmus Nørgaard, chief financial officer at NREP.