Amsterdam-based investment firm Orange Capital Partners (OCP) has acquired a 110,000 m2 residential portfolio from Nordic real estate investor NREP.
The properties were held by NREP’s Nordic Strategies Fund II (NSF II), which became vintage in November 2016.
The portfolio is comprised of 1,220 modern rental apartments located across seven residential blocks in districts across Copenhagen (two thirds) and Aarhus (one third) in Denmark.
Joris Voorhoeve, partner at Orange Capital Partners, said: 'The underlying portfolio is at the core of our investment strategy: affordable and sustainable housing across key regions in Europe. Over the past twelve months we have had a strong momentum in the Nordics and are committed to staying in Denmark for the long term.
'NREP continues to deliver standard-setting developments across the Nordics and we are very pleased to be adding this significant transaction to our high-quality Danish residential portfolio.'
All properties are either newly built or due to be completed this year. The properties, known as Teglgårdshusene, Green Square Garden, Nordhuset, Ørestad Have, Resource Rows, Risskov Brynet and Lisbjerg – Made in Aarhus, were predominantly (95%) constructed by NREP and partners.
This is the latest in a number of acquisitions of residential property in the Nordics by OCP, which emerged as the strongest bidder amongst a number of interested parties.
Jakob Flymer, investment director at NREP, said: 'This is a significant transaction for NREP and showcases our ability to build institutional quality portfolios of global appeal, at scale and at speed.
'We have been able to demonstrate the diversity of our investment strategy, in this case successfully exiting after six years, contrasting well with other incidences where we have maintained a longer-term owner and operator approach.
'Residential properties, particularly high-quality and well-located rental apartments, such as those in this portfolio, have proven their resilience and stand out as particularly attractive to investors looking to gain further exposure to the Nordics.'
All properties have strong sustainability characteristics, with all expected to achieve DGNB certification. In 2020, the 30,000 m2 Green Square Garden scheme became the largest Danish residential development to be awarded DGNB Gold.
Additionally, innovative recycled materials were used in the construction of Resource Rows, including reused bricks from the Carlsberg breweries and concrete and upcycled wood from the Copenhagen Metro.
Concluded Flymer: 'NREP has long pioneered environmental and social sustainability in real estate and the strong interest generated for this portfolio is testament to our ESG-driven strategy, which we are pleased to see resonating strongly with an international audience.'
