DWS has finalised the acquisition of a residential development in Copenhagen from a Danish development company. The off-market transaction has been completed on behalf of Europe II, the DWS-managed open-ended institutional core real estate fund.
The residential complex, comprising 361 modern, small and medium-sized apartments aimed at families and young professionals is located in the developing residential area of Bronshoj – Husum in the North-West of Copenhagen. The area offers excellent amenities including schools and recreational areas combined with good connectivity to Copenhagen’s city centre. The investment looks to take advantage of the high demand for smaller rental apartments and strong rental growth driven by demographic changes and urbanisation.
Nicoletta De Bona Bottegal, Lead Portfolio Manager for Europe II said, “As an affordable residential scheme, the Danish acquisition provides an opportunity to benefit from rapid growth of the Greater Copenhagen area and aligns well with the fund’s strategic focus to invest in core and core plus assets.” She continued: “The fund’s significant exposure to residential as well as the logistics sector is a distinguishing feature and have added to the resilient profile of the fund. It has been offering an annual cash distribution yield of circa 4%, which is one and a half times the INREV ODCE Index in the same period. This combination has proved a winning formula during recent market turbulence driven by strong rental income. As we navigate the current market environment, the fund is well positioned to prove its credentials furthermore.”
Image provided by Monfort.