Patrizia bags 13,000m2 residential development in Copenhagen

German investor Patrizia Immobilien has strengthened its Danish portfolio with the acquisition of a residential development in a central location in Copenhagen from a local developer.

The development includes 127 new units currently under construction in the former southern docklands of the Danish capital. The flats provides 13,000 m2 of space and are scheduled for completion at end-2016.

Financial details were not disclosed.

Patrizia said it plans to integrate the assets into a new property fund for private investors, scheduled for placement in late 2016. 'This project is an opportunity to act early and secure residential units for development in an outstanding location in the southern docklands of Copenhagen – and thus benefit from the positive economy in Copenhagen,' said Joachim Fritz, managing director of Patrizia GrundInvest.

Patrizia Denmark will be responsible for property and asset management.

Patrizia said it expects rental growth in the Danish residential property sector in the near future as a result of a low supply of accommodation. 'Given its attractive location in the former southern docklands, which will be transformed into a modern residential area over the coming years, heightened demand for the acquired development is expected,' the company added. There are currently around 5,000 people living in Copenhagen’s southern dockland area, and another 10,000 inhabitants are expected to move by 2015, due to the vicinity of the Teglholmen peninsula from Copenhagen city centre.

Patrizia has built up a €1 bn portfolio in the Nordics since entering the market in 2010. The company currently has a 25 staff in Denmark, with smaller offices in Sweden and in Finland.

Rikke Lykke, managing director of Patrizia in the Nordics, recently told PropertyEU that the Group plans to expand its presence further in the region with the opening of an office in Norway by the end of the year or in early 2016 at the latest.