EDIF expands its reach into the European PRS market with the acquisition of a further prime residential building in the Østerbro area
Europa Capital, the pan-European real estate investment manager, working with Copenhagen based Keystone Investment Management, has completed the acquisition of a further 38 residential units in the Østerbro area of Copenhagen, just north of the its core fund, Europa Diversified Income Fund (“EDIF” or the “Fund”). The 3,467 sqm inner city, on behalf of building at Nygaardsvej 27 is located in the heart of this upscale residential district and is a high quality property with attractive fit out and excellent amenities. The fully leased property, constructed in 2017, was acquired in an off market transaction.
EDIF, which held its first close of €350 million in November, is aimed at international investors and is focused on creating stable and diversified income through investments in the logistics, residential and office sectors. The Fund aims to capitalise on the structural changes of innovation and urbanisation, targeting strong economies in Western Europe, with a focus on France, Germany, the Netherlands and Denmark.
The initial seed portfolio comprised a mix of logistics, residential and office investments and has outperformed its market indices to date, is over 98% occupied and recorded 99.5% rent collection in 2020, demonstrating its resilience during the COVID-19 pandemic. With accretive leverage, the Fund has capital remaining to deploy into further acquisitions to diversify the portfolio. This latest Copenhagen acquisition takes the residential sector exposure to over 30%. Two thirds of the fund income is in the logistics and living sectors, which remain the current focus of its investment strategy.
Andy Watson, Partner and Fund Manager at Europa Capital, commented: “After the recent PRS acquisitions in Amager, we are pleased to add a further prime Copenhagen residential asset to our diversified income portfolio. This is the 15th asset in the Fund and takes the annual fund income to almost €20 million. We continue to look for more acquisition opportunities as we build an asset base with a focus on liquid investments in the most liquid markets of Continental Europe.”