Invesco Real Estate has agreed to forward-fund a development project within Bryggens Bastion scheme, which is situated in Islands Brygge area in central Copenhagen. Bryggens Bastion is being developed by?developer Bach Gruppen A/S and is due for delivery in 2021. The asset will comprise 124 apartments with associated common areas, bicycle parking and storage rooms. The purchase price was not disclosed.
Bryggens Bastion benefits from a prime location with excellent public transport links. Proximity to Copenhagen University may also provide opportunities to attract students, academics and other university staff as tenants.
“We are seeing an increasing demand from institutional investors for high quality and income-producing residential projects in Europe and are looking forward to further expand in this sector,” said John German - Managing Director - Residential Investments at Invesco. “I’m really pleased we’ve been able to secure a second Danish residential asset so soon after announcing Gronttorvet 8 and this is a real testament to the quality and hard work of our team when it comes to sourcing and executing off-market deals."
“Our client has tasked us with identifying assets that deliver stable and predictable income in central locations, and Bryggens Bastion really fits the bill: it has a history of near-permanent occupancy in a location where vacancy rates are very low, while potential yield compression could provide further upside as the asset stabilises,” said William Ertz – Senior Director – Fund Management. “The fact that this is both the first residential and the first Danish investment for this mandate also serves to broaden the investment universe of the portfolio.”
Jacob Smergel-Krog, Founder and CEO of RUBIK Properties added: “For Rubik Properties, this second transaction together with Invesco once again reflects how a strong relationship between an international investor and a local operating partner can materialize on attractive off-market opportunities. In RUBIK we feel extremely privilege of once again being onboarded as part of the Invesco team."
Anders Bo Bach, CEO of Bach Gruppen Kobenhavn A/S commented: “Bryggens Bastion on Islands Brygge will contain green open spaces and a green pathway, vegetation on facades, bicycle routes, two high-rise buildings, a water space with the function of climate protection and built-in bicycle lifts. In addition, the emphasis has been placed on the possibility of modern communities in the individual buildings and an architectural interaction with the surrounding buildings. In 2017 and earlier in 2019 we made the first forward sale transactions in the project with Heimstaden. Now we are of course proud that another international and very professional investor, Invesco has chosen to invest in Bryggens Bastion. It has been uplifting to find that the elements that we have focused on in the development of the project have also appealed to Invesco. We look forward to the further journey with the realization of this part of the master plan. With this transaction, we have sold approx. 57,000m² of the 125,000m² of the project.”
