Europa Capital has agreed to forward purchase Kanalgaden 3, a former office building which is being refurbished into state-of-the-art senior living accommodation in Albertslund, a suburb of Copenhagen, Denmark, on behalf of its latest value add fund, Europa Fund VI, from Gefion Group.
The acquisition forms the second investment for Europa Capital’s Nordic Living Platform, in joint venture with Keystone Investment Management A/S, following the acquisition of a senior living development comprising 166 residential units in Helsingør, Denmark, last year.
Kanalgaden, which is currently 25% pre-let, will provide 88 rental apartments, comprising one and two bedroom units which are tailored for senior living across c. 8,200 sq m of residential space.
The former office building is currently being refurbished by Gefion Group and is expected to complete in January 2023. The scheme has been designed to a ‘silver’ certification according to the DGNB system, the German Sustainable Building Council.
The project is located in Albertslund, a municipality in the western suburbs of Copenhagen.
The JV seeks to expand on Europa Capital’s long-standing track record in the living sector. One of the early institutional movers in the residential market, Europa Capital has invested c. €1.3 billion into PRS and student accommodation, totalling over 11,300 beds across the UK, Spain, Denmark and Germany. Europa Capital has delivered nine residential schemes totalling 909 units in the Danish market, delivering strong double digit and high multiple returns for investors.
Jason Oram, Partner & Fund Manager at Europa Capital, commented: “The occupier demand for senior living accommodation in Copenhagen is supported by an ageing population with the rate of inhabitants aged over the age of 65 expected to increase to 25% by 2030. Although our target occupier is not limited to residents of this age bracket, the increase in this proportion of society is not matched by a sufficient pipeline of purpose built accommodation, presenting an opportunity.
“Additionally, Kanalgarden grows the number of units in our senior living pipeline to over 200 units, and we continue to monitor the market for opportunities which match our return targets for our investors, whilst also building on our existing expertise in the living sector.”