PATRIZIA expands foreign operations with further investment in Denmark (DE/DK)
Monday 28 May 2012
PATRIZIA Immobilien AG is continuing to expand its foreign operations in Denmark. Through its subsidiary, PATRIZIA WohnInvest Kapitalanlagegesellschaft mbH (KAG), it acquired a residential facility in Copenhagen for the PATRIZIA Euro City Residential Fund I. The investment volume is now approximately €30 million.
The residential facility was completed in 2009 and consists of a seven-story building with a total of 103 apartments over 9,141 m² living space.The property is fully let and located in Søborg, in the north of the Danish capital. It enjoys a very good transport link to the center of Copenhagen nine kilometers away. 75% of the apartments have four rooms with living space between 93 and 100 m².
This type of apartment is particularly attractive for families, who make up one of the main tenant groups in Søborg. All the apartments have modern and upmarket fixtures and fittings, as they were originally designed for the housing ownership market. Each apartment also has a balcony or a terrace. The building won an architecture prize for its design. The design came from the office of Kim Utzon, son of the architect of the Sydney Opera House in Australia.
"The population of Denmark is still growing. According to the latest forecasts, the population of Denmark will grow 0.2% per year to approximately €6.05 million in 2050," says Peter Willisch, Director of PATRIZIA WohnInvest KAG.
"Urbanization is expected to continue at the same time, with the result that at the end of the forecast period around 90% of the Danish population will live in urban areas. This development is leading to rising demand for living space. The good connection to the center of Copenhagen makes the location attractive – not only for the tenants, but also for our fund investors."
The purchase in Søborg has increased the fund volume of PATRIZIA Euro City Residential Fund I to over €200 million. Nearly 90% of the capital invested is attributable to Sweden, Finland and Denmark, 10% to Germany. "Alongside Germany, we see the residential real estate markets in the Nordic countries as very attractive. In the last six months alone, we have invested some €80 million just in Copenhagen," says Willisch.
PATRIZIA recognized the increasing importance of the Nordic market last year by opening the PATRIZIA Scandinavia office in Stockholm in summer 2011. The foreign branch office manages PATRIZIA’s residential and commercial investments.