KKR invests in 494 Copenhagen student housing units

Copenhagen, Denmark

Global investment firm KKR has invested in 494 Copenhagen student housing units in three buildings.

The high-quality, Purpose-Built Student Accommodation (PBSA) assets in Greater Copenhagen were sold by TPG Angelo Gordon, a diversified credit and real estate investing platform, for a reported €90 million.

The PBSA assets were completed in three phases from 2020-2023, and are in an established residential area with excellent transportation links to the centre of the Danish capital.

All have EPC rating A and are in the process of being DGNB certified.

KKR is making the investment in Copenhagen student housing through its European Core+ Real Estate strategy, which focuses on investments in high quality, substantially stabilised assets with long-term growth potential.

Keystone, the Danish residential specialist, will be the local operating partner. The Mark will take care of property management.

Alexander Thams, Director and Head of Nordics Real Estate for KKR, says, “We are delighted to announce this acquisition which builds on our ambitions in Nordic real estate, following our recent investments in Finland, Denmark and Sweden. The PBSA assets in Copenhagen are significantly high-quality and well-amenitised to uniquely serve the strong student population in the city. We look forward to continuing to build a sizeable housing portfolio in the coming years, capitalising on Copenhagen’s favourable supply and demand dynamics.”

Student accommodation is great addition

Ian Williamson, Head of Core+ Real Estate in Europe at KKR, adds, “This transaction is a great addition to KKR’s European real estate platform and our Core+ strategy, where we are targeting attractive structural dynamics and strong market trends. PBSA is an important part of our Core+ strategy, and this acquisition’s high quality and modern characteristics aligns well with the demand in Copenhagen, a significant university city which is structurally undersupplied.”

KKR’s recent Nordic Real Estate investments include the acquisition of a rental residential portfolio in Finland and Denmark, plus a prime last-mile logistics property in Sweden. KKR’s European PBSA portfolio also includes assets across the UK.

KKR was advised by Gorrissen Federspiel (legal), Deloitte (tax and financial due diligence), WSP (technical) and also Keystone.

TPG Angelo Gordon has developed the high-quality PBSA asset with the Danish developer, SquareMeter. It has been advised by Nordanö and Eastdil Secured in the divestment process, as well as by Lund Elmer Sandager (legal), PwC (tax and financial vendor due diligence) and Niras (technical).

KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions.

TPG Angelo Gordon is a diversified credit and real estate investing platform within TPG. The platform manages approximately $80 billion across a broad range of credit and real estate strategies.

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