German property firm Patrizia has emerged as the buyer of a large EUR314 million student accommodation portfolio in Denmark from European private equity real estate investor Deutsche Finance International (DFI), acting on behalf of DFI’s inaugural fund, DFI Value-Add Fund I (DFI EVAF).
The 40,500 m2 portfolio known as Blækhus was established by DFI in 2018 with the intention of creating the leading Danish student accommodation brand. It 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 3,800 m2, 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 benefit 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. 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.
'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,' said Louise Hertz, country manager Patrizia Denmark. '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 modern, tailored fitout 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.'
Source: propertyeu.info on the 11th of January