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The Danish government has reached a new strategy for building regulations and how such should be adapted to the new climate requirements. Apart from tightening the threshold limit value, more detailed as well as differentiated regulation has been agreed upon to ensure the Danish green transition in relation to new buildings.
The Danish government has reached a new strategy for solar power, as relevant actors in the Danish solar panel market has raised concerns and issues in the current legal framework. In order to ensure the green transition in Denmark, the Danish government therefore seek to streamline and ensure the legal and administrative structure is set up correctly for developers and financing parties when it comes to solar panels.
KKR has in cooperation with Keystone Investment Management A/S has acquired a newly built student housing complex in Copenhagen with approximately 500 units from Angelo Gordon.
The property is 13,668 square meter dormitory ‘The Mark’ on Brøndbyøster Boulevard, which was constructed in three phases from 2020 to 2023 in collaboration with the consulting firm SquareMeter.
Gorrissen Federspiel assisted KKR with acquiring the property.
NREP has successfully purchased the residential property Hørkær Have from Skanska.
The residential project at Hørkær Have in Herlev will contain 264 primarily smaller rental apartments distributed over a total of 22,720 square meters.
The 264 apartments in Hørkær Have will range from two to five rooms, between 58 and 137 square meters. According to Skanska A/S, there is significant local demand for smaller apartments, and therefore the apartments have an average size of 85 square meters.
The transaction was handled by Gorrissen Federspiel’s M&A Real Estate team and other specialists within the firm.
DEAS A/S is a leading property service and consultancy business with over 30 years of experience in asset management in Denmark.
In 2023, the DEAS employed more than 900 property service professionals and had a turnover of more than EUR 90 million.
Gorrissen Federspiel assisted Montagu in the divestment.
Many experts are now pointing to the fact that the market supply of residential property in Copenhagen is lacking and will be for the future. This is mainly due to fewer built residential rental properties compared to the continued population growth in the capital, which the number of residential units is unable to keep up with. From a demographic view, it is specifically smaller houses that are going to be in deficit, and by looking at population projections the issue is reaching out in the long term for Copenhagen and the growth in population, which is also why it has been given somewhat additional focus from politicians.
The decrease in newly built homes is partly due to the high interest rate levels (which appears to be falling), uncertainty about the economic situation, and high construction costs. However, forecasts predict that this tendency is about to reverse.
For many years, the housing market in Copenhagen has been extremely robust and a good business case for investors. The general expectation is that the residential rental market will remain robust in the future, however, the decrease in rental properties being built and completed in recent years and in the coming years, will lead to adjustments in the market supply. For investors, this development will support and positively impact rental income. Prices for owner-occupied property are also expected to show increasing trends conditioned that current rent levels remain at the very least.
These conditions emphasize the need for continued residential development to meet this demand and create a positive environment for landlords and investors.
By looking at Denmark over the previous couple of years, much has happened on supermarket properties and its operators. The trend has especially involved discount supermarkets and the different operators switching course in the Danish market.
Many properties have undergone somewhat thorough refurbishing works in order to streamline and incorporate new strategic layouts. Some operators have left the country leaving behind bulky portfolios of properties to be taken over and incorporated into new concepts. And some operators have changed their strategies, which also required streamlining of their portfolios. These shifts for supermarket operators have resulted in much capital expenditure in current properties as well as supermarket properties shifting hands as part of updating and adapting portfolios.
This trend entailing an increase in supermarket operators either acquiring or selling market units, even some portfolios in larger numbers. And we see this trend continuing at least for the remainer of 2024.