Invesco Real Estate invests in third Danish residential project in 10 months

Invesco Real Estate (Invesco), advised by its local partner RUBIK properties, has acquired a c6,000 sq m residential investment in Valby, an established suburb in West Copenhagen, for an undisclosed amount. 

Grønttorvet 16 (Røllike Hus), a new-build investment comprised of 65 units, is the second residential investment Invesco has acquired within the Grønttorvet regeneration scheme and is one of the last to be completed. In October last year, Invesco announced it had acquired Grønttorvet 8 (Primula Hus) including 191 apartments. In addition, Invesco closed at the end of last year, a further residential transaction in the Islands Brygge area in central Copenhagen.

The site is being developed by FB Gruppen, which is transforming the old Grønttorvet area into a modern residential district with a strong emphasis on sustainability, the local community and families, and affordable rents, with plans to deliver around 2,500 homes by 2021.

With a focus on the creation of amenity and green spaces, the scheme has already received the Public Award from Copenhagen Citizens and a separate award from the Copenhagen Municipality.

“The Danish residential market is still relatively new for us but; this third investment within ten months confirms our commitment to both this market and sector. We plan to continue to further widen our residential footprint across Europe given the strong track record we have in the asset class, our deep knowledge of the market and our positive view of the pan-European residential sector on disciplined, long-term basis,” said John German, Managing Director – Residential Investments at Invesco.

Once completed, the Grønttorvet development will include a central garden with underground parking, rooftop amenities and individual courtyards, a kindergarten and school as well as elderly care facilities. Sustainability initiatives include solar panels and sedum on the roof, and the widespread use of recycled building materials.

Grønttorvet 16 is located in Valby, an area that offers good access to open green spaces and is close to Frederiksberg, one of the most desirable city suburbs. Grønttorvet benefits from excellent transport connections, with the city centre being a 15-minute cycle ride away. A new Metro station will open from 2024.

Christopher Brassington, Senior Director – Fund Management at Invesco adds: “We are delighted to be able to close this transaction as scheduled under the current challenging circumstances of COVID 19 and to be already able to confirm that leasing has progressed successfully. With this high-quality asset in Grønttorvet we have the opportunity to gain exposure to an excellent, world-class regeneration project and in collaboration with our local, prime partners RUBIK properties and FB Gruppen A / S to deliver affordable housing in a sustainable and community-friendly environment.”

“At a time when COVID 19 has made a mark on the property market in many countries, we are proud that our projects also in an international perspective can attract interest from foreign investors,” says CEO Hans-Bo Hyldig of FB Gruppen A/S. “We are extremely pleased when quality-focused and professional investors like Invesco return to enter into agreements with us on new projects. This has been an equally positive and constructive process for this second development project with 65 homes as the first one we agreed on in the autumn of 2019 with 191 homes. With a stable investor circle at Grønttorvet, we signal security for the residents, which is also a core value for the FB Group.”

Jacob Smergel-Krog, CEO at RUBIK Properties, says: “Pleased to have contributed to yet another off-market transaction between Invesco and FB Group where we are looking forward following the continued successful progress of Grønttorvet 8 & 16 as well as the overall Grønttorvet scheme.”