Global specialist real estate investor, developer and manager – Round Hill Capital – enters the Danish Build to Rent sector with the acquisition of a portfolio of three newly built, Build to Rent freehold assets in Aarhus, Denmark. The portfolio has been acquired from three investment vehicles established and managed by Pareto Securities.
The purchase has been made on behalf of Round Hill Capital’s European Residential Income Fund II (ERIF II), which also owns c. 1,700 residential units across Germany, Ireland, the Netherlands and Finland.
The assets have been acquired with a high occupancy rate. As part of the transaction, Round Hill Capital has arranged for ERIF II to take over the attractive existing financing in place on the portfolio.
The entire Danish Build to Rent portfolio includes 324 units – a mix of one-, two- and three-bedroom apartments across over 21,000 sqm. Two of the buildings are in Tilst and total 276 units, with the third 48-unit building located in Risskov.
The scheme is aimed at a broad range of demographic groups – from students and young professionals to families and seniors. Both micro-locations are located close to multiple educational institutions and the Aarhus University Hospital – the largest workplace in Aarhus with over 10,000 employees. Nectar Asset Management will act as the property manager and LokalBolig as the leasing agent.
“High quality, modern residential assets with good environmental credentials, located in leading European cities with strong supply / demand fundamentals, remain a conviction asset class for Round Hill Capital. Securing these assets off market at a pricing level that we consider extremely attractive in the current market, demonstrates our ability to source opportunities with strong income characteristics, while at the same time acting as a dependable buyer providing transaction certainty despite the challenging economic environment.”Michael Bickford, Founder and CEO, Round Hill Capital
With a population of c. 355,000, Aarhus is Denmark’s second largest city. It is characterised by strong population growth – forecasted at over 8% over the next ten years, which is driving demand for new residential accommodation.