Information on the Target

CapMan Residential Fund (CMRF) has strategically invested in Køhlers Have, a newly constructed residential property situated in the highly desirable South Harbour area of Copenhagen. This premium residential complex consists of 384 apartments and two commercial units, all designed to meet the criteria for DGNB Gold certification for new constructions. With its sixth investment through the pan-Nordic core residential fund, this acquisition aligns perfectly with the fund’s strategy to target prime locations in major Nordic cities and properties with robust sustainability credentials.

Completed in May 2023, Køhlers Have is composed of three buildings built with high-quality materials, reflecting the architectural style typical of the historic South Harbour, characterized by its distinctive triangular red rooftops. The property includes communal amenities such as green courtyards, roof terraces, and ample underground parking, with each residential unit featuring a balcony or terrace. Currently, all residential units are fully leased.

Industry Overview in Denmark

The Danish residential real estate market has undergone significant transformation over the past two decades, propelled by increasing urbanization and a booming economy. The capital city, Copenhagen, has become a focal point for investment due to its robust infrastructure, vibrant culture, and high demand for rental properties. The South Harbour area, in particular, has attracted considerable attention because of its strategic location and ongoing urban development projects.

As of recent years, Denmark has emphasized sustainable urban living, with many new developments incorporating eco-friendly practices and materials. The government’s commitment to green construction and sustainability has encouraged residential projects to pursue certifications like DGNB Gold, which further enhances their marketability and appeal.

Furthermore, recent initiatives in public transportation, such as the introduction of new metro lines, are set to bolster the South Harbour area's accessibility, further enhancing its attractiveness as a residential destination. The district is expected to benefit from proximity to essential amenities including shopping centers, education facilities, and recreational spaces.

The demand for high-quality rental properties continues to escalate in urban regions, supported by a wealth of expatriates and young professionals moving into the city. This trend signifies a promising outlook for investors seeking opportunities in the Danish residential sector.

The Rationale Behind the Deal

The acquisition of Køhlers Have is a strategic move for CapMan's Residential Fund, as it aims to enhance its portfolio with high-quality assets situated in prime urban locations. The fund's commitment to sustainability and quality aligns seamlessly with the features of Køhlers Have, further solidifying its investment strategy focused on strong, long-term performance. The existing full occupancy of the property also indicates a robust demand, promising reliable returns in the future.

Additionally, with the anticipated opening of a new metro station just 200 meters from the property, the investment is poised to benefit from improved connectivity and accessibility, making it an even more attractive option for current and future residents.

Information about the Investor

CapMan is recognized as a leading Nordic private asset expert, managing over €5 billion in assets. The company is known for its active approach to value creation and commitment to providing innovative solutions for investors. With a focus on sustainability and greenhouse gas reduction, CapMan is aligned with global environmental goals, ensuring that its investments not only achieve financial returns but also foster long-term positive impacts.

The CapMan Real Estate team comprises more than 70 professionals across major Nordic cities, including Helsinki, Stockholm, and Copenhagen. The team's extensive experience and local market knowledge facilitate informed investment decisions and foster successful portfolio growth, particularly in the residential sector.

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The investment in Køhlers Have represents a sound opportunity for CapMan, reinforcing its strategy to acquire high-quality, sustainable residential properties in prime locations. Given the positive trends in Denmark's urban residential market and the asset's advantageous positioning near essential amenities and transportation links, this acquisition is well-placed to deliver strong returns over time.

Furthermore, the fact that the property has already achieved full occupancy and is set to benefit from future infrastructure developments bodes well for ongoing revenue and asset appreciation. CapMan's established reputation and expertise in managing real estate investments further strengthen my belief that this will be a successful addition to their portfolio.

Overall, Køhlers Have is not only a strategically advantageous investment but also a responsible one, aligning with CapMan’s sustainability objectives. It serves as a commendable model of how modern residential developments can meet the needs of contemporary urban living while contributing positively to the environment.

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