Invesco Real Estate has acquired 191 apartments, including 90 parking spaces, in Gronttorvet in Valby, an established residential submarket in West Copenhagen. The site, which the company acquired for c.€60m is being developed as part of a larger regeneration scheme in the wider Gronttorvet area. When complete, the full Grønttorvet development will comprise 2,300 homes, a central garden with underground parking, rooftop amenities and individual courtyards, and also a supermarket, kindergarten and school. Sustainability initiatives include solar panels and sedum on the roof and more sustainable construction through reuse of building materials. The asset will also benefit from easy access to public transport with the opening of a Metro station in 2024.
“We continue to see a lot of opportunity in the European residential space, and we’re really pleased to have acquired this asset in a new market for us, as part of our wider efforts to broaden our European residential footprint,” said John German, Managing Director - Residential Investments at Invesco. “Copenhagen’s rental market has grown at around 4% annually over the past 10 years, and we expect future demand will continue to exceed the supply of modern residential products, so anticipate upward pressures on rental levels that will contribute to stable and growing long-term income.”
The site is being developed by the FB Gruppen, which is transforming the old Gronttorv (wholesale area for fruit and vegetables) into a “green residential town”, with a mix of for rent, for sale residential buildings and student accommodation. It has already received the Public award from Copenhagen Citizens and a building award from the Copenhagen Municipality. Completion of the investment is expected in December 2020.
Tobias Simon, Senior Director – European Fund Management at Invesco added: “The investment in Project Grønttorvet represents an exciting opportunity for our client to participate in the transformational regeneration going on in an already-established residential market. The asset is especially well-positioned to attract families looking to move a little further out of the city, while still retaining easy access to the centre.”
“It has been a pleasure working with Invesco Real Estate and I am delighted that RUBIK Properties as a local operating partner has been bridging international capital and Danish real estate”, said Jacob Smergel-Krog, CEO of RUBIK Properties.
Hans-Bo Hyldig, CEO FB Gruppen A / S commented: “Gronttorvet is more than an urban development project. It is a vision of a green and mixed neighbourhood that attracts residents with a focus on quality, sustainability and communities. When international investors like Invesco can see the values in Copenhagen's greenest district, I am pleased on both FB Gruppen' and the residents' behalf. We clearly share values at crucial points in the development of housing and have had a constructive and inspiring negotiation process with both Invesco and RUBIK. We look forward to realising the project at Gronttorvet 8 with them.”
