Pan-European private equity real estate investment adviser Deutsche Finance International (DFI) has unveiled a €300m Danish micro living strategy.
DFI has launched the platform with the off-market forward funding acquisition of a €100m development in Copenhagen from a local developer. The development, which is scheduled to complete in the second half of 2024, will comprise 350 rental units, as well as a coffee shop and gym in addition to a number of communal study rooms, lounges and kitchens.
Francesco Orofino, vice president at DFI, said: “This acquisition kickstarts our micro-living strategy in a market we understand well. The Danish living sector benefits from significant tailwinds, including a substantial undersupply and a structural shift in favour of rental housing versus home ownership, driven by stricter mortgage regulatory requirements and affordability constraints that are at the front of potential occupiers’ minds in the current economic environment.
“This asset is well located in an emerging district of Copenhagen with great transport connectivity and we look forward to building out this platform further.”
Paul Nearchou, managing director at DFI, added: “At DFI, we have a strong track record of building consumer-centric operating platforms in asset classes supported by long term, robust structural demand in order to maximise liquidity and create value. With Blækhus we successfully assembled and exited the leading student accommodation portfolio in Denmark and we are aiming to utilise that experience through the execution of our new Danish strategy.
“The current market backdrop and likely associated re-pricing presents us with an exciting opportunity to capitalise on the market cycle and utilise our experience investing in the Danish residential sector to deliver attractive returns on behalf of our investors.”
DFI was advised by Accura (legal), Deloitte (financial and tax), Ramboll (technical), Longevity (sustainability), and JLL (commercial).
