A fund established by Deutsche Finance International (DFI), the private equity investment platform specialised in alternative real estate sectors, has acquired a newly opened 228-unit property in Copenhagen to seed a platform of purpose-built student accommodation in Denmark. The vendor is Danish property investment, management and development company Koncenton. The terms of the investment were not disclosed.
The student residential property is located in Valby, an inner suburb south-west of central Copenhagen, and compromises 7,387m². It is a short cycle ride from the campuses of Copenhagen Business School, Aalborg University and UCC University College. Each student’s unit is self-contained, equipped with an ensuite bathroom and a small kitchenette. The building provides large common rooms on the ground and top floors. Ny Ellebjerg station is less than 500 metres from the property, providing access to the city’s extensive subway system as well as S-trains and the regional rail network.
Gavin Neilan, a Founding Partner of DFI, commented: “This acquisition illustrates how we identify scalable investment themes in alternative real estate sectors and source opportunities. Denmark’s fragmented student housing market offers compelling fundamentals: a robust economy, good universities, rising student numbers and widespread under-supply of accommodation. We’re looking to build a platform of high-quality assets to serve the pent-up demand.”
Paul Nearchou, Investment Director of DFI, said: “Our goal is to create a dynamic student housing brand in the Danish market and to scale it up rapidly by adding more purpose-built student accommodation, with each asset providing 75 to 500 beds. We have already established a strong pipeline and are focusing on the markets of Copenhagen, Aarhus and Odense.”
DFI was advised by Plesner, E&Y, Langham Hall Norton Rose and Deloitte.
