Europa Capital, the pan-European real estate investment manager announces that it has completed the sale of a six building office portfolio in the Copenhagen suburb of Valby on behalf of its pan-European value add fund, Europa Fund V, to Schroder Real Estate. The financial terms of the transaction are confidential.
The portfolio, which comprises 24,445 sq m of multi-let office space, was acquired in December 2016. Since then Europa Capital have increased the occupancy from 74% to 85% and net operating income has grown by almost 40%.
The suburb of Valby has undergone substantial redevelopment and modernisation in recent years, with both office and residential demand boosted by the benefit of excellent transport links into Copenhagen city centre.
Europa Capital has made significant investment into Denmark and the Copenhagen area in recent years across multiple asset classes. Since 2015, Europa Capital has forward funded the delivery of over 921 units in Aarhus and Valby, of which the majority has since been sold.
Hugo Black, Partner at Europa Capital, commented: “This portfolio is a great example of our ability to execute a value-add strategy successfully. Back in 2016 this investment provided the opportunity to buy in at pricing levels that reflected low rental tones with significant vacancy, with the prospect of enhancing performance. A maturing urban location, Valby has benefited from a rippling out of occupier demand from Copenhagen’s CBD where vacancy is extremely low.
“Having successfully completed our asset management strategy for the office portfolio, this sale completes our business plan and allows us to crystallise value and deliver strong returns for our investors.”
