Europa Capital and Copenhagen-based Keystone Investment Management, have paid Danish developer Gefion Group €88m for a complex of 178 newly developed residential units in the Amager area of Copenhagen.
The assets, which are contained in a group of four buildings, are being acquired on behalf of the Europa Diversified Income Fund.
Europa signed a forward commitment with Gefion in May 2020and has now taken ownership of the assets following their completion and leasing.
The waterfront project is located in the Øresund region of Copenhagen which is near to the city centre and Copenhagen Airport.
Europa Diversified Income Fund (EDIF) held its first close of €350 million in November and is an open-ended vehicle designed for international investors and focused on logistics, residential and offices. Europa explained that the fund aims to capitalise on the structural changes of innovation and urbanisation, targeting strong economies in Western Europe, with a focus on France, Germany, the Netherlands and Denmark.
The acquisition of the residential assets in Copenhagen increases the fund’s GAV to about €400 million. Two thirds of its income is derived from the logistics and living sectors, which remain the current focus of its investment strategy. The initial seed portfolio comprised a mix of logistics, residential and office investments.
Private rented sector long-term and low volatility
“We see PRS residential as a long-term, low-volatility backbone to our diversified income portfolio,” said Europa Capital partner and fund manager Andy Watson. “The successful lease-up of these four buildings also demonstrates the appeal of high quality facilities in a unique waterfront location.”
Europa Capital was advised by Accura, Colliers, EmCon & PWC in the transaction. Keystone Investment Management will provide local management services to EDIF for this investment.