PATRIZIA acquires large Danish PBSA portfolio

PATRIZIA AG announces it has acquired a large €314m purpose-built student accommodation (PBSA) portfolio in Denmark.

One of the seven Danish PBSA developments acquired by PATRIZIA | PBSA News
One of the seven Danish PBSA developments acquired by PATRIZIA.

Partner for global real assets – PATRIZIA AG – announces the acquisition of a large €314m purpose-built student accommodation (PBSA) portfolio in Denmark, on behalf of its institutional clients. The acquisition was made from the pan-European private equity real estate investor Deutsche Finance International (DFI). Colliers, KHR Project Management, Bruun & Hjejle, Rubik Properties and EY advised PATRIZIA on the investment.

The 40,500 sqm PBSA portfolio of seven assets are located in Copenhagen and Aarhus, and total 1,186 units. There is also around 3,800 sqm of commercial space – of which the vast majority is fully let. The assets in the portfolio operate under the Blaekhus brand and are newly built or under development, with the majority of them set to be completed in 2022.

“There is high demand for modern, high-quality, purpose-built student accommodation in Denmark, especially in metropolitan urban centres such as Copenhagen and Aarhus, where student populations are growing rapidly and are increasingly discerning. The market is, however, experiencing acute undersupply, particularly of purpose built accommodation, and is highly fragmented, increasing the value of high-quality, branded portfolios with strong local amenities and transport links.

“This portfolio benefits from the well-known and reputable Blaekhus brand and includes modern, tailored fitout to suit students’ needs, and this investment offers a sustainable income profile in a sector experiencing high demand and is indicative of our ongoing interest in alternative sectors.”

Louise Hertz, Country Manager, PATRIZIA Denmark

Each PBSA development benefits from a strong micro location, which gives residents easy access to universities and local amenities. Units are self-contained with a modern fit-out suitable for student living. Each property offers health and wellness-focused amenities such as communal kitchens, yoga studios and study rooms, as well as dedicated social spaces in the form of common rooms, cafes and games rooms.

Six of the PBSA properties are located in central Copenhagen. Each scheme is within walking distance of a Metro Line or S-train station, which offers a fast and direct route to the city’s leading educational institutions – including Copenhagen University, Copenhagen Business School, Copenhagen College and Aalborg University. The seventh asset is located in Aarhus, Denmark’s second largest city, and is within walking distance to a tram line that will take residents to the city centre in 15 minutes.

“Despite the challenges posed by the pandemic, student housing continues to prove resilient and is a high conviction sector for us as part of our pan-European strategic focus on alternatives. This transaction is significant as it marks the largest student housing portfolio deal in Denmark to date and grows our investment in Europe’s student accommodation sector to more than EUR 435m in the last 12 months alone. We plan to accelerate our strategic investments in living alternatives in 2022, focusing on key pan-European urban locations that meet our research-based investment criteria.”

Antonio Marin-Bataller, Director, pan-European Transactions at PATRIZIA