CBRE Investment Management, on behalf of a fund sponsored by the firm, has acquired a portfolio of two multi-family properties in Ballerup, Greater Copenhagen, Denmark.
The portfolio comprises 16,974m2 of high-quality residential space made up of 222 affordable rental units for middle-income households, as well as 77 garage spaces. The buildings were completed in 2023 to high sustainability standards and have DGNB Gold certification. Aimed at Copenhagen’s middle-income families, the buildings are already fully let; the apartments are 75m2 on average and located around two green courtyards including a playground and greenhouse.
Hilke Nijmeijer, Senior Portfolio Manager at CBRE Investment Management said: “Rising interest rates combined with higher property taxes have meant that, for the first time in over a decade, renting in Copenhagen is more cost-effective than owning a property. Whilst the share of rental stock in Ballerup is generally higher than in the rest of the city, the supply of modern rental stock is very low, and the population growth is above average. The estimated new supply for the coming years is unlikely to meet demand. With this acquisition, we can meet local demand for affordable, newly built rental properties with strong environmental credentials, contributing to inclusive cities in line with the strategy for this fund and CBRE IM’s long-standing commitment to sustainability.”
Jenny Tuleby, Head of Transactions and Investment Operations, CBRE Investment Management Nordics, added: “This deal further underscores our commitment to grow our footprint within the affordable housing space in the Nordics. The current market conditions present compelling opportunities and we will continue to be active within this space for the right deals.”
Image provided by SECNewgate.
Europe Real Estate — an overview of real estate developments in European countries.
