Europa Capital, in partnership with Keystone Investment Management, completed the sale of a six-building office portfolio in the Copenhagen suburb of Valby on behalf of its pan-European value add fund, Europa Fund V, to Schroder Real Estate. The purchase price was not disclosed.
The portfolio, which comprises 24,445m² of multi-let office space, was acquired in December 2016. Since then Europa Capital and Keystone have increased the occupancy from 74% to 85% and net operating income has grown by almost 40%.
The suburb of Valby has undergone substantial redevelopment and modernisation in recent years, with both office and residential demand boosted by the benefit of excellent transport links into Copenhagen city centre.
Hugo Black, Partner at Europa Capital, commented: “This portfolio is a great example of our ability to execute a value-add strategy successfully. Back in 2016, this investment provided the opportunity to buy in at pricing levels that reflected low rental tones with a significant vacancy, with the prospect of enhancing performance. A maturing urban location, Valby has benefited from rippling out of occupier demand from Copenhagen’s CBD where vacancy is extremely low. Having successfully completed our asset management strategy for the office portfolio, this sale completes our business plan and allows us to crystallise value and deliver strong returns for our investors.”
Morten Schultz, Partner at Keystone, added: “We believe very much in future growth in the Valby office market and with tenants lined up for another 10% of the space we are happy to hand this excellent portfolio over to the new owner.”