Patrizia has invested in a large €314m student accommodation portfolio in Denmark. The vendor is Deutsche Finance International (DFI). The 40,500m² portfolio consists of purpose-built student accommodation (PBSA) assets in Copenhagen and Aarhus, comprising a total of 1,186 units, and additional commercial space of around 3,800m², of which the vast majority is fully let.
All seven assets in the portfolio, which operate under the Blaekhus brand, are newly built or under development with the majority of them set to be completed in 2022. Each benefits from a strong micro-location, giving residents easy access to universities and local amenities. Units are self-contained with a modern fit-out suitable for student living. Each property offers health and wellness-focused amenities such as communal kitchens, yoga studios and study rooms, as well as dedicated social spaces in the form of common rooms, cafes and games rooms.
Six of the properties are located in central Copenhagen, each within walking distance of a Metro Line or S-train station, offering a fast and direct route to the city’s leading educational institutions, including Copenhagen University, Copenhagen Business School, Copenhagen College and Aalborg University. The seventh asset is located in Aarhus, Denmark’s second-largest city, within walking distance to a tram line that will take residents to the city centre within 15 minutes.
Louise Hertz, Country Manager Patrizia Denmark, commented: “There is high demand for modern, high-quality, purpose-built student accommodation in Denmark, especially in metropolitan urban centres such as Copenhagen and Aarhus, where student populations are growing rapidly and are increasingly discerning. The market is, however, experiencing acute undersupply, particularly of purpose-built accommodation, and is highly fragmented, increasing the value of high-quality, branded portfolios with strong local amenities and transport links. This portfolio benefits from the well-known and reputable Blaekhus brand and includes a modern tailored fit out to suit students’ needs, and this investment offers a sustainable income profile in a sector experiencing high demand and is indicative of our ongoing interest in alternative sectors.”
Antonio Marin-Bataller, Director, pan-European Transactions at Patrizia, said: “Despite the challenges posed by the pandemic, student housing continues to prove resilient and is a high conviction sector for us as part of our pan-European strategic focus on alternatives. This transaction is significant as it marks the largest student housing portfolio deal in Denmark to date and grows our investment in Europe’s student accommodation sector to more than €435m in the last 12 months alone. We plan to accelerate our strategic investments in living alternatives in 2022, focusing on key pan-European urban locations that meet our research-based investment criteria.”