Invesco acquires two additional rental properties in the greater Copenhagen area for a German individual mandate

Invesco Real Estate, the global real estate investment arm of Invesco Ltd. (NYSE: IVZ) with EUR 80 billion in assets under management, has acquired two residential properties in the affluent Ballerup submarket in the Greater Copenhagen area for a single European residential real estate mandate on behalf of a German institutional investor. The property was acquired in cooperation with RUBIK Properties, a leading real estate operator in Denmark

The seller of the two high-quality new-build properties with a total area of c. 14,900 m² and 186 units is FB Gruppen, a leading Danish property developer. One of the properties was completed in June 2024; the second in December 2024. The first property was sold fully let.

Both buildings have green roofs with solar panels and are expected to receive DGNB Gold certification^[1]. They have also received the EPC rating^[2]"A2020", the latest and highest rating in the Danish market. The sustainability features of the properties include smart meters to record consumption data and an efficient district heating supply.

With a population of approximately 2.1 million people, the Greater Copenhagen area has experienced strong growth over the past decade, which has led to a significant excess demand for housing. Ballerup has become a popular residential area, particularly appreciated for its proximity to Copenhagen city centre, high-quality local facilities and a strong employment market. A new light rail line, which is scheduled to go into operation in 2025, will further improve the connection.

The underlying objective of the mandate is to build a diversified pan-European residential real estate portfolio that generates sustainable distributions and an attractive total return by investing in high-quality PRS properties^[3] in prime European cities. The mandate underlines the attractiveness of the European PRS market as well as Invesco Real Estate's long-standing track record in the European residential real estate sector.

Overall, the acquisitions in Ballerup are the third transaction for the mandate of the German institutional investor in the last three months. The first transaction was for the acquisition of 160 residential units in Madrid, and the second was a forward funding deal for the acquisition of a 99-unit residential project in Beaulieu Park in Chelmsford, UK. Invesco intends to close at least one additional residential real estate transaction for the mandate this quarter.

Rob Johnston, Managing Director, Head of Investments, UK & Nordics at Invesco Real Estate, said: "High-quality residential properties in Denmark remain in high demand and we are delighted to be able to further expand our presence in one of the most attractive European PRS markets for us, the Greater Copenhagen area. With the right properties, investors in Copenhagen can achieve high risk-adjusted returns in a market with attractive initial yields compared to other major European cities."

Jacob Smergel-Krog, Founder and CEO of RUBIK Properties, said: "We are delighted to be working with the Invesco Real Estate team again to support the acquisition of these two residential projects in Denmark. Residential real estate remains a compelling asset class that offers strong risk-adjusted returns. Our focus remains on tenant-oriented properties and prime locations, where we see the greatest demand."

"We are pleased to be working with Invesco Real Estate and RUBIK Properties again. The negotiation process benefited from the strong synergies from our previous transactions and we are always happy when strong and professional partners express interest in other projects in our portfolio," said Hans-Bo Hyldig, CEO of FB Gruppen.

¹ DGNB = German Sustainable Building Council
² EPC = Energy Performance Certificate = Energy Performance Certificate
³ PRS = Private Rental Sector