Global investment giant Nuveen Real Estate has made its Danish investment debut with the forward-funding of a student accommodation scheme in central Copenhagen for €100 mln.
The asset, dubbed Campus and comprising 390 units, has been acquired for Nuveen's European Cities strategy from local developer Bach Gruppen. It is due to be completed in summer 2022 and also marks European Cities' first residential investment.
Liz Sworn, fund manager, Nuveen Real Estate, said: 'Campus offers an exciting opportunity for the European Cities strategy to diversify its portfolio by committing to what will be a high-quality and ideally located asset upon its completion.
'For our first investment into the housing sector, we chose a project that offered an excellent location as well as strong tenant demand. The Nordics has high levels of its population entering higher education, while the availability of private student accommodation is constrained, particularly for a property with this standard of specification.'
Once completed the European Cities strategy will own 15 assets in key, gateway cities across Europe, with a total gross asset value of around €2 bn.
Campus appeal
Campus will comprise around 16,500 m2 of student accommodation across seven floors and is centrally located. In addition to the residences, the property will benefit from a cinema, gym, café and rooftop terraces.
Michael Keogh, research director for Nuveen Real Estate, added: 'Housing continues to be a key area of growth across Europe.
'Although we anticipate some short-term headwinds for the student accommodation sector due to the pandemic, we expect that by 2022, when the project is completed, the market will have adjusted and there will be strong demand.
'Copenhagen has many of the key attributes that we look for in the student housing market, further buoyed by the financial support that the government provides to EU students. We believe that the strength of the asset’s location, opposite the university campus, and its high-specification finish curated to the evolving needs of the student, will future-proof demand.'
Developer Bach Gruppen is one of Denmark's largest privately owned real estate companies focused on real estate development, construction and investments.
Anders Bo Bach, CEO of Bach Gruppen Copenhagen, said: 'Campus forms part of the larger master plan for the Bryggens Bastion area on Islands Brygge that we have developed over several years.
'Bryggens Bastion will contain open spaces and a green pathway, vegetation on facades, bicycle routes, two high-rise buildings, a water space with the function of climate protection and built-in bicycle lifts.
'With Campus we have had a strong emphasis on integrating modern community-driven city-life for students with green awareness.'
Nuveen Real Estate’s European Cities strategy forms part of the firm’s global resilient series, which focuses on investing in high-quality assets in cities which the investor considers to be ‘future-proof’.
Nuveen Real Estate was advised by Rubik Properties, NIDO Student, Plesner, Niras and Colliers.
Bach Gruppen was advised by Catella Corporate Finance and Accura.
