Patrizia picks up €314m Danish student digs portfolio

The 40,500 m2 portfolio known as Blækhus was established by DFI in 2018 with the intention of creating the leading Danish student accommodation brand. It consists of purpose-built student accommodation (PBSA) assets in Copenhagen and Aarhus, comprising a total of 1,186 units, and additional commercial space of around 3,800 m2, of which the vast majority is fully let.

All seven assets in the portfolio, which operate under the Blaekhus brand, are newly built or under development with the majority of them set to be completed in 2022. Each benefit from a strong micro location, giving residents easy access to universities and local amenities. Units are self-contained with a modern fit-out suitable for student living. Each property offers health and wellness-focused amenities such as communal kitchens, yoga studios and study rooms, as well as dedicated social spaces in the form of common rooms, cafes and games rooms.
 
Six of the properties are located in central Copenhagen, each within walking distance of a Metro Line or S-train station. The seventh asset is located in Aarhus, Denmark’s second largest city, within walking distance to a tram line that will take residents to the city centre within 15 minutes.

'There is high demand for modern, high-quality, purpose-built student accommodation in Denmark, especially in metropolitan urban centres such as Copenhagen and Aarhus, where student populations are growing rapidly and are increasingly discerning,' said Louise Hertz, country manager Patrizia Denmark. 'The market is, however, experiencing acute undersupply, particularly of purpose built accommodation, and is highly fragmented, increasing the value of high-quality, branded portfolios with strong local amenities and transport links. This portfolio benefits from the well-known and reputable Blaekhus brand and includes modern, tailored fitout to suit students’ needs, and this investment offers a sustainable income profile in a sector experiencing high demand and is indicative of our ongoing interest in alternative sectors.'
 
Antonio Marin-Bataller, director of European transactions at Patrizia, said: 'Despite the challenges posed by the pandemic, student housing continues to prove resilient and is a high conviction sector for us as part of our pan-European strategic focus on alternatives. This transaction is significant as it marks the largest student housing portfolio deal in Denmark to date and grows our investment in Europe’s student accommodation sector to more than €435 mln in the last 12 months alone. We plan to accelerate our strategic investments in living alternatives in 2022, focusing on key pan-European urban locations that meet our research-based investment criteria.'

Paul Nearchou, managing director at DFI, added: 'Launching the Blækhus platform in 2018 has allowed us to be early movers and one of the largest investors in the Danish student accommodation market. The strength of the Blækhus brand and the associated portfolio is testament to the work of our team over the last three years which we are extremely proud of.'

DFI EVAF closed in 2019 with €500 mln of equity, including co-investment capital. The Fund is fully allocated across a diversified portfolio of assets, with 70% of commitments invested in broadly-defined living strategies. To date, DFI EVAF has realised performance significantly above its target.  DFI places high importance on delivering tailored solutions and co-investment opportunities to its clients, and, between the fund series, co-investment and separate client accounts, has to date invested in seven European geographies (UK, Ireland, Denmark, Spain, Portugal, the Netherlands and Germany) across a range of customer-centric and operational real estate strategies amassing €3 bn of assets under management.
 
Patrizia was advised by Colliers, KHR Project Management, Bruun & Hjejle, Rubik Properties and EY. DFI was advised by Eastdil Secured, Accura and Deloitte.