Hines European Core Fund Acquires its Second Living Asset in Denmark

(COPENHAGEN, DENMARK) – Hines, the international real estate firm, has acquired Mariendalsvej 55-57, its second living asset in Denmark, on behalf of its Hines European Core Fund (HECF), for an undisclosed price.

Located in Frederiksberg, a thriving neighborhood in Copenhagen, Mariendalsvej 55-57 covers a total area of 13,901 square meters, consisting of two adjacent living properties to include 38 student housing units and 50 residential homes. In addition, the sites’ retail space of 166 square meters, has just been leased by Food Family ApS. Hines negotiated and signed a lease with this contemporary food operator whilst undertaking the acquisition, meaning the asset is now 100% let.

Completed in 2019, Mariendalsvej 55-57 is located in an affluent residential area close to several higher education institutions, including Copenhagen Business School and the University of Copenhagen. Frederiksberg is well-known for its many parks and green areas ­and is a short walk to the metro, shopping, dining and cultural attractions. The location typical appeals to a younger demographic of discerning residents and individuals. In addition, the property is EPC A-rated and includes rooftop photovoltaic cells. The property has been financed (by a ‘green bond’ financing system – recognition of the asset’s sustainable credentials.

This acquisition further underlines HECF’s focus on the Nordics following three completed acquisitions in the region during the last two years. Renewed investment appetite is driven by the healthy demographic, its economic and political stability, and the increasing investment liquidity observed in the region.

This acquisition marks HECF’s fifth living purchase, aligning with its ongoing strategy to increase exposure to family-oriented residential assets in key European city markets with strong long-term growth prospects. It represents the latest in a string of HECF living deals which include a recent acquisition in Dublin and the acquisition of a mixed-use scheme in Cologne, Germany which had a significant residential component.

CBRE advised the vendor on the transaction.

Simone Pozzato, Managing Director and HECF Fund Manager, at Hines, said:

“We continue to broaden our exposure to the living sector, driven by the strong fundamentals of some European cities which continue to grow at rapid pace but are severely undersupplied in terms of residential stock. Mariendalsvej 55-57 is a very attractive investment due to its prime urban location, strong market fundamentals and its ability to meet the needs of both residents and students. It is rare to acquire an existing but modern high-quality scheme in such a prominent location. The Fund will continue to target these type of investment opportunities and the Nordic region offers strong risk-adjusted returns for core investors who have local experts like James Robson and his team present on the ground.”

James Robson, Senior Managing Director and Country Head – The Nordics, at Hines, commented:

“We are very pleased with the acquisition of Mariendalsvej 55-57. It’s a gem of a location and our second living asset in Denmark and once again demonstrates our long-term commitment to the Nordics. We believe there is ample appetite for quality living spaces and student accommodation in Denmark that is centrally located with excellent transport and connectivity links, underpinned by ESG and wellness credentials. We will continue to seek out similar living opportunities, on or off market, as we continue on our growth trajectory.”

Anette Grotum, Senior Director at CBRE, added:

”This is a prime property in a prime location and it has also been felt on the interest. Many domestic and foreign investors are looking for this type of property - and with good reason, because these are solid investments.”

About Hines

Hines is a privately owned global real estate investment firm founded in 1957 with a presence in 255 cities in 27 countries. Hines oversees investment assets under management valued at approximately $83.6 billion¹. In addition, Hines provides third-party property-level services to more than 367 properties totaling 138.3 million square feet. Historically, Hines has developed, redeveloped or acquired approximately 1,486 properties, totaling over 492 million square feet. The firm has more than 171 developments currently underway around the world. With extensive experience in investments across the risk spectrum and all property types, and a foundational commitment to ESG, Hines is one of the largest and most-respected real estate organizations in the world.

Since entering Europe in 1991, Hines has grown its European platform to include offices in 16 cities as well as a presence in 62 cities in 13 countries. Hines oversees investment assets under management valued at approximately €21.7 billion and provides third-party property-level services totaling 3.9 million square meters in Europe, in Austria, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Poland, Spain and the United Kingdom.

Visit www.hines.com for more information.

1. Includes both the global Hines organization as well as RIA AUM as of 30 June 2021.

About Hines European Core Fund (HECF)

The HECF was set up in 2006 with the aim of providing investors with a resilient income profile and benchmark’s outperformance, derived from a diversified portfolio of high-quality assets located in prime locations across major European cities, As of Q2 2021 the HECF portfolio was 97.7% occupied with an aggregate fund value of c.€2.4bn. The portfolio of the Fund comprised 32 assets including forward commitments, invested in 16 city markets across ten different European countries.

Photo courtesy of Digital Studio - Steen Bjerregaard
Caption Photo courtesy of Digital Studio - Steen Bjerregaard