Saxo Properties, the property investment arm of Saxo Bank, the Copenhagen-based trading and investment specialist, has entered into a joint venture with Resolution Real Estate Advisers LLP 'Resolution Property', the pan-European real estate fund, whose investors include some of the major US universities such as Harvard and Yale and foundations, currently has 1.5 billion of assets under management.
The joint venture will focus on co-investing up to approximately 250 million in the central business district of Copenhagen, targeting residential and mixed-use, residential and commercial buildings which will benefit from the application of intensive asset management, including refurbishment and the repositioning of occupiers.
With an in-house team of 15 highly skilled property professionals and a facilities management arm, Saxo Properties is well positioned to identify off market opportunities, and implement an asset management program of improvements resulting in significantly enhanced returns for investors.
The new venture, which is already targeting its first purchases, will have a life of three to five years with the emphasis on income growth and capital gains.
Jesper Damborg, Chief Executive of Saxo Properties said: "We are delighted to have teamed up with Resolution Property, one of the leading pan-European real estate investors, with assets across continental Europe. The joint venture will seek to take advantage of carefully selected opportunities which have the potential to produce above average returns in the medium term."
Robert Laurence, Chief Executive of Resolution Property said: "The stability of the underlying economy in Copenhagen, coupled with the opportunity to acquire good quality assets at levels representing a significant discount to their peak values, is of great appeal to us.
"Our joint venture with Saxo Properties provides a highly experienced property team at local level with an established track record of achieving good returns and an exciting opportunity for us to develop our value add real estate strategy in a new market place."
Saxo Properties is a wholly-owned subsidiary of Saxo Bank and was launched in March 2010 to provide closed-end funds for both high net worth clients and institutional investors, focusing on residential, office and retail property in Central Copenhagen.
Originally founded in 1998, Resolution Property, backed by a shareholder base including international private equity investors, pension funds and major US universities and foundations, is invested across continental Europe including France, Poland, Germany, United Kingdom and Switzerland. With a 808 million capital raising completed in 2007, Resolution Property is targeting a portfolio size over 2.6 billion.
de Morgan & Company of London, acted on behalf of Saxo Properties in the negotiations and Resolution Property was represented by Whitmarsh Holt Young along with local advisers' including Plesner and Sadolin & Albæk.