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OCP acquires new Koncenton property with student housing

OCP student housing micro apartments Valby

OCP has from domestic Koncenton acquired a property of just shy of 18,000 sq m in the Copenhagen district of Valby, comprising also a newly completed student housing complex with ground-floor retail units. Colliers was sell-side advisor on the transaction.

The property is located at Poppelstykket 2, etc., Ny Ellebjerg, a part of the Valby district that is undergoing rapid development. Apart from an existing commercial building, the property accommodates approximately 360 micro apartments that appeal to students and the growing ranks of singles in pursuit of a simple lifestyle and an affordable rent. The property was sold by the developer of the property, Koncenton. Located right next to Ellebjerg station and the upcoming metro extension to the Sydhavn (South Harbour) district of Copenhagen, the property benefits from an ideal location in the city.

The buyer is Orange Capital Partners (OCP), a long-term investor aiming at a diversified and resilient portfolio of various assets. With this acquisition, OCP adds to its existing Danish portfolio.

“Sustainable design, close proximity to amenities and city and affordable rents were the key factors which influenced our decision to invest in the asset. We intend to invest in more such high-quality and affordable housing properties,” says Joris Voorhoeve, Partner, OCP.

Law firm Accura was buy-side advisor to OCP on the transaction.

Koncenton is thrilled that it was possible to sell the property so promptly on the heels of completion. The property originally had a project value of more than DKK 500 million and the sale generated a fair profit for the syndicate investors.

“We are extremely proud to have generated substantial value in no time at all for both investors and tenants by effecting an efficient acquisition and development of the property. With the sale of Poppelstykket, investors stand to pocket a sizeable profit the very instant the project has been completed, underpinning the business potential of Koncenton as an investment partner,” says CPO Anders Bangsgaard, Koncenton.

Koncenton values the good collaboration with Colliers in connection with the sale, and although Koncenton’s investment projects do not factor in budgeted value increments, the company has a strong track-record in terms of finding and developing lucrative property development schemes. “We assess the potential of multiple development properties every year, and drawing on our experience we are able to pinpoint exactly which properties to snap up. In our opinion, rental housing in Danish growth centres harbours a vast potential, which is very much supported by the sale of Poppelstykket,” adds Anders Bangsgaard.

Law firm Gorrissen Federspiel was sell-side advisor to Koncenton on the transaction together with Colliers.

“We continue to see exceptionally strong demand from international investors, in particular for the residential market in Copenhagen and other major towns and cities. The sale of Poppelstykket confirms that financially strong buyers are ready to strike, provided the right products come along,” say Kristian Axel Nielsen, Director of Colliers’ Capital Markets team, Copenhagen, and Partner Søren Lindbjerg, Aarhus, facilitating the sale in a joint effort.


Visualisation kindly provided by Koncenton


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Kristian Axel Nielsen

Director, Capital Markets

Copenhagen

Kristian's primary areas of expertise are mediation of commercial and investment properties as well as property-related advisory services and strategic planning.

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Søren Lindbjerg

Partner

Aarhus

Søren primarily works with project developments within all residential segments as well as sale of investment and residential rental properties.

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