Bouwfonds REIM has acquired two residential buildings in Copenhagen in mint condition for the Bouwfonds European Residential Fund, benefitting from the repricing of the Copenhagen residential market.
Moreover, in The Hague the fund has acquired its first property in the Dutch real estate market, benefiting from the temporary reduction in transfer tax from 6% to 2%. These acquisitions signify further diversification into core cash driven residential assets in the strongest economic regions of the European Union.
Copenhagen - Vejlegade
The property in the district of Østerbro consists of an older building (built in 1918) that was completely renovated in 2009 as well as two newly built residential properties dating from 2009.
The 23 residential units, which were originally constructed with the strategy of selling them to private individuals, are of high quality. The investment totals 8.7 million and the gross rate of return is 6.0%. The asset was sold through a local property development company.
Copenhagen - Frederiksberg
The asset located in Frederiksberg consists of 27 residential units and 35 underground garage parking spaces. The property was built in 2009 with the aim of selling the units off to private individuals. The property was acquired from the Danish property developer Sjælsø for an investment of 13.8 million. The gross rate of return is 6.0%.
The Hague Til Brugmanplantsoen
The building in the Groente en Fruitmarkt district was constructed in 1996 and contains 59 residential units. The investment amounts to 6.4 million. The property was sold by the pension fund for Dutch construction companies, Bouwinvest.
Bouwfonds European Residential Fund
The fund currently holds properties in Germany, France, Norway, Sweden, Denmark and the Netherlands. The occupancy rate is around 98%. Bouwfonds European Residential Fund is a real estate investment fund under German law. It focuses primarily on institutional investors and wealthy private clients, with a minimum initial investment of 500,000.
The fund's gross investment volume is currently around 400 million with a leverage of approximately 34%. The fund managers aim to acquire 1.5 billion worth of residential real estate by the end of 2013.
Bouwfonds REIM works in partnership with the investment company Catella Real Estate AG, with Bouwfonds REIM taking responsibility for performance and Catella providing the Service KAG. The target return is 5-6% per annum according to the BVI method (the standard method developed by the German federal association for investment and asset management).
Source: Bouwfond REIM