Deutsche Finance International (“DFI”), the pan-European private equity real estate investor which manages €3 billion of assets and specialises in customer-centric real estate, has sold its Danish student accommodation platform, Blækhus, for €314 million to the global real asset investment manager, PATRIZIA AG. The transaction was undertaken on behalf of DFI’s inaugural fund, DFI Value-Add Fund I (“DFI EVAF” or the “Fund”) and marks the Fund’s fourth successful exit.
Blækhus was established by DFI in 2018 with the intention of creating the leading Danish student accommodation brand. Since then, it has assembled the largest student portfolio in Denmark, comprising 1,186 units across seven assets, with the majority located in Copenhagen. All assets are centrally located, in close proximity to multiple universities and benefit from strong transport links.
The aggregation strategy consisted of acquisitions, refurbishments and forward purchases, primarily on an off-market basis and directly from developers. This enabled DFI to capitalise on the strong occupational fundamentals of the Danish student market characterised by leading universities, virtually-free education and heavily under-served in terms of beds.
Paul Nearchou, Managing Director at DFI, added: “Launching the Blækhus platform in 2018 has allowed us to be early movers and one of the largest investors in the Danish student accommodation market. The strength of the Blækhus brand and the associated portfolio is testament to the work of our team over the last three years which we are extremely proud of”.
DFI EVAF closed in 2019 with c. €500 million of equity, including co-investment capital. The Fund is fully allocated across a diversified portfolio of assets, with c. 70% of commitments invested in broadly-defined living strategies. To date, DFI EVAF has realised performance significantly above its target. DFI places high importance on delivering tailored solutions and co-investment opportunities to its clients, and, between the fund series, co-investment and separate client accounts, has to date invested in seven European geographies (UK, Ireland, Denmark, Spain, Portugal, the Netherlands and Germany) across a range of customer-centric and operational real estate strategies amassing €3 billion of assets under management. One of the firm’s flagship projects is the Olympia Exhibition Centre which is currently being transformed into a new vibrant cultural, business and leisure hub for London through extensive investment and re-development.
Source : Deutsche Finance International (DFI)