Patrizia, acting together with Universal-Investment, has agreed to forward purchase the development of a 136-unit residential development project in Aarhus, Denmark, on behalf of Bayerische Versorgungskammer (BVK). The asset has been acquired in an off-market transaction from a consortium of private investors. The purchase price was not disclosed.
The scheme, which is being developed by leading developer Raundahl & Moesby A/S, comprises approximately 8,700m² of residential space across seven buildings and 38 underground car parking spaces. The development, which will feature a mix of one to four-bedroom rental apartments with an average unit size of 64m², is expected to be completed in phases from 2019 to 2020.
The project is situated in Aarhus, Denmark’s second-largest city, in a prime inner-city location adjacent to the botanical garden and the famous “The Old Town” attraction. It is also near local amenities, cultural institutions and the Aarhus Å river, which runs through the city.
Nicolai Sehestedt Dalsgaard, Associate Director Transactions at Patrizia Denmark, commented: “This investment offers a rare off-market opportunity to acquire a residential turnkey project in a prime, established residential location in one of Aarhus’ most attractive areas. There is currently a limited supply of new residential accommodation in prime locations in Aarhus offering attractive average unit sizes and as a result, we expect this high-quality development to benefit from the strong long-term demand in the rental market. Furthermore, the positive outlook for Denmark’s residential market is backed by positive underlying economic fundamentals.”