Rockspring Property Investment Managers has re-entered the Danish market after absence of about 15 years with the acquisition of a student housing portfolio in Copenhagen for €30 mln.
Rockspring said that the off-market acquisition was carried out on behalf of a separate account client. The rationale was to capitalise on the lack of accommodation available for the 97,000-strong student population at the city's 14 universities, which include the University of Copenhagen and Copenhagen Business School.
'We believe that this is a timely entry into the Danish market for Rockspring with the successful acquisition of a portfolio which benefits from the growing Danish higher education market, the constrained supply and consequent upward pressure on rents, and the emergence of student housing as an institutional investment grade property sub-sector,' said Eduardo Noguera, European director at Rockspring.
'Through a combination of these favourable underlying fundamentals and our experience in the recently outperforming UK student housing market, we expect to have the opportunity to drive returns for our investor,' Noguera added.
Rockspring entered the student housing market back in 2010 when it acquired a property in Edinburgh through a joint venture structure. A year later Rockspring purchased a a new 232 student apartment scheme in Leeds.
The latest deal represents Rockspring's return to Denmark after about 15 years. The portfolio in Copenhagen consists of two assets, Tegholmsgade 36 and Søndre Fasanvej 90, which provide 175 modern ensuite units over 7,501 m2. The portfolio is fully occupied.
Tegholmsgade 36, in Sydhavnen (South Harbour), was completed in 2015 and forms part of an extensive harbour-front redevelopment located immediately beside Aalborg University, which has 3,700 students.
Søndre Fasanvej 90 (pictured) in Valby was extensively renovated in 2015, including a conversion to student housing from its former residential use. It is adjacent to the popular residential enclave of Frederiksberg and is 1.6 kilometers from Copenhagen Business School, which has a 20,000-strong student body.
The properties will be managed day-to-day on behalf of Rockspring by a local operator, SF Management, which is an experienced residential and student investment manager in Denmark.
