Resolution JV to invest EUR 250m in Copenhagen

European fund manager Resolution Real Estate Advisors is partnering with Saxo Properties, the property investment arm of Copenhagen-based Saxo Bank, to invest up to EUR 250 mln in the central business district of the Danish capital.

The new joint venture will target residential and mixed-use, as well as commercial buildings that could benefit from intensive asset management, including refurbishment and repositioning. The new venture, which is already targeting its first purchases, will have a life of three to five years with the emphasis on income growth and capital gains.

'The joint venture will seek to take advantage of carefully selected opportunities which have the potential to produce above average returns in the medium term,' said Jesper Damborg, chief executive of Saxo Properties.

Resolution's CEO Robert Laurence added: 'The stability of the underlying economy in Copenhagen, coupled with the opportunity to acquire good quality assets at levels representing a significant discount to their peak values, is of great appeal to us. For us it is an excellent opportunity to add value to our real estate strategy in a new market.'

Saxo Properties is a wholly owned subsidiary of Saxo Bank and was launched in March 2010 to provide closed-end funds for both high net worth clients and institutional investors, focusing on residential, office and retail property in Central Copenhagen.

Originally founded in 1998, Resolution Property, backed by a shareholder base including international private equity investors, pension funds and major US universities and foundations, is invested across continental Europe including France, Poland, Germany, United Kingdom and Switzerland. Resolution Property has a total of EUR 1.5 bn in assets under management.