A new €250m joint venture fund designed to invest in residential properties in Denmark was set up this week by Saxo Properties, the property investment arm of Denmark's Saxo Bank, and the UK-based investor Resolution Real Estate Advisers (Resolution Property.)
Focusing on residential schemes in Copenhagen, the fund is designed to last 3 to 5 years and will target “value-added investments,” say the partners. It will offer both private equity and pension fund investors a "large pipeline of opportunities."
According to Jesper Damborg, chief executive of Saxo Properties, “after the financial crisis in 2008, we have seen prices going down between 32% to 50% in Copenhagen.”
And “this has created a large pipeline of opportunities for both local and foreign investors, who then had the possibility to acquire properties at a very low price or to refurnish their existing assets by providing extra equity investments with the view to increase their rent."