Europa Capital secures pipeline of 150 residential units in Copenhagen

Europa Capital, a pan-European real estate investment manager, in partnership with Copenhagen based Keystone Investment Management, has secured a pipeline of 150 residential units in the Amager area of Copenhagen, Denmark, on behalf its core diversified income strategy. 

The project has been acquired from Danish developer, Gefion Group, by way of a forward commitment.

 
The development, comprising 150 rental units across three buildings, will be delivered in three phases between October 2020 and March 2021. Located in the Øresund region of Copenhagen, the accommodation will be in close proximity to local amenities whilst also being a short distance from the city centre and Copenhagen Airport. 
 
Europa Capital established a core diversified income strategy with seed investment from its principal shareholder,  Mitsubishi Estate, last year and since then has increased its focus on this area of the market. Upon completion of these properties, Europa Capital will have invested over EUR340 million of equity for the strategy in a portfolio generating a gross annual rental income of approximately EUR18 million.
 
The core diversified income portfolio also includes eight logistics assets in the prime logistics corridor of the Netherlands between the Port of Rotterdam and Venlo on the Dutch and German border and two office buildings in Paris and Munich, which have now been managed to full occupancy. 
 
Residential for rent and e-commerce led logistics remain the key high conviction strategies for the vehicle, providing global institutional investors with exposure to Europe’s most resilient sectors and economies.
 
Since 2012, Europa Capital has acquired, on behalf of a range of investment products, a total of 7,000 beds in let residential and student markets across Europe, totalling circa EUR1.2 billion of investment.
 
Andy Watson, Partner and Fund Manager at Europa Capital, says: “Europa Capital firmly believes in the long term resilience of the residential private rented sector, especially in Copenhagen where we have executed successful investments for our value add funds. This will be the first investment in the residential sector for our core strategy, building on Europa Capital’s extensive experience in this market. Where the demographics make sense, we will continue to target further residential opportunities in major northern European cities with liquid investment markets.”