Real Estate has agreed to forward-fund a development project in Denmark鈥檚 capital on behalf of one of its German separate account clients.
The global property manager said it will fund the development of the 124 apartments in the wider development known as Bryggens Bastion, which is situated in Islands Brygge area in central Copenhagen.
The Bryggens Bastion project is expected to deliver a mix of residential, student housing, micro-apartments and commercial in ten buildings once completed.
Bryggens Bastion is being developed by Bach Gruppen and is due for delivery in 2021.
The latest deal is Invesco鈥檚 second Danish residential transaction. Last month, Invesco paid DDK520m (鈧�60m) to acquire 191 apartments being developed in Gr酶nttorvet in Valby, a residential submarket in West Copenhagen.
With Bryggens Bastion, Invesco said it is adding its 30th asset to its pan-European residential portfolio which has seen investments in seven countries.
John German, managing director of residential investments at Invesco, said: 鈥淲e are seeing an increasing demand from institutional investors for high quality and income-producing residential projects in Europe and are looking forward to further expand in this sector.
鈥淚鈥檓 really pleased we鈥檝e been able to secure a second Danish residential asset so soon after announcing Gr酶nttorvet 8 and this is a real testament to the quality and hard work of our team when it comes to sourcing and executing off-market deals.鈥�
William Ertz, a senior director responsible for fund management at Invesco, said: 鈥漁ur client has tasked us with identifying assets that deliver stable and predictable income in central locations, and Bryggens Bastion really fits the bill: it has a history of near-permanent occupancy in a location where vacancy rates are very low, while potential yield compression could provide further upside as the asset stabilises.
鈥淭he fact that this is both the first residential and the first Danish investment for this mandate also serves to broaden the investment universe of the portfolio.鈥�
