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Patrizia pays DFI €314m for PBSA portfolio in Denmark

Patrizia has paid Deutsche Finance International €314 million for a student accommodation portfolio in Denmark, acquired on behalf of institutional clients.

DFI sold the portfolio on behalf of its inaugural fund, DFI Value-Add Fund I and is the Fund’s fourth successful exit.

The seven-asset, 40,500 sq m portfolio, located in Copenhagen and Aarhus, comprises 1,186 units, and additional commercial space of around 3,800 sq m, most of which is let. The portfolio operates under the Blækhus brand.

Blækhus was established by DFI in 2018 with the intention of creating the leading Danish student accommodation brand. It became the largest student portfolio in Denmark, comprising the seven assets sold to Patrizia.

The assets are newly built or under construction and due to be completed in 2022. The properties are geared to health and wellness and provide communal kitchens, yoga studios and study rooms, as well as dedicated social spaces such as common rooms, cafes and games rooms.

Portfolio benefits from strong demand and ‘acute’ undersupply

Six of the properties are located in central Copenhagen, providing access to Copenhagen University, Copenhagen Business School, Copenhagen College and Aalborg University. The seventh asset is located in Aarhus, which is Denmark’s second largest city.

“There is high demand for modern, high-quality, purpose-built student accommodation in Denmark, especially in metropolitan urban centres such as Copenhagen and Aarhus, where student populations are growing rapidly and are increasingly discerning,” said Louise Hertz, country manager Patrizia Denmark. “The market is, however, experiencing acute undersupply, particularly of purpose built accommodation, and is highly fragmented, increasing the value of high-quality, branded portfolios with strong local amenities and transport links.”

Patrizia was advised by Colliers, KHR Project Management, Bruun & Hjejle, Rubik Properties and EY. DFI was advised by Eastdil Secured, Accura and Deloitte.