– Europa Diversified Income Fund expands reach into the European PRS market –
Europa Capital, the pan-European real estate investment manager, working with Copenhagen based Keystone Investment Management, has completed the acquisition of 178 newly developed residential units across four buildings in the Amager area of Copenhagen from Danish developer, Gefion Group, for €88 million. The transaction has been completed on behalf of the Europa Diversified Income Fund (“EDIF” or the “Fund”).
Having entered into a forward commitment with Gefion in May 2020, Europa Capital has taken ownership of the assets following their completion and successful lease up.
Located in the Øresund region of Copenhagen, Gefion’s waterfront development is a short distance from the city centre and Copenhagen Airport.
EDIF, which held its first close of €350 million in November, is an open-ended vehicle designed for an international investor audience and is focused on creating stable and diversified income through investing in logistics, residential and offices. 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 comprises a mix of logistics, residential and office investments. The portfolio, which has outperformed its market indices to date, is over 98% occupied and has 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.
The acquisition of these assets in Copenhagen takes the GAV of the Fund to almost €400 million, with two thirds of the income 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: “We see PRS residential as a long-term, low-volatility backbone to our diversified income portfolio. We are pleased to have sourced and executed this opportunity for EDIF with Keystone, a local partner with specialist residential experience and a strong track record with Europa Capital in Copenhagen, a city which we favour for its strong fundamentals of population growth. The successful lease-up of these four buildings also demonstrates the appeal of high quality facilities in a unique waterfront location.”
Europa Capital was advised by Accura, Colliers, EmCon & PWC in the transaction. Keystone Investment Management will provide local management services to EDIF for this investment.