CBRE Investment Management Acquires Portfolio of Affordable Rental Properties in Ballerup, Greater Copenhagen

CBRE Investment Management, on behalf of a fund sponsored by the firm, has acquired a portfolio of two multi-family properties in Ballerup, Greater Copenhagen, Denmark.

The portfolio comprises 16,974 sq m of high-quality residential space made up of 222 affordable rental units for middle-income households, as well as 77 garage spaces. The buildings were completed in 2023 to high sustainability standards and have DGNB Gold certification. Aimed at Copenhagen’s middle-income families, the buildings are already fully let; the apartments are 75 sq m on average and located around two green courtyards including a playground and greenhouse.

Ballerup is a well-established residential area in Greater Copenhagen known for its family-friendly atmosphere. The portfolio is well-located directly next to the Ballerup station and the local shopping center. With excellent transport infrastructure - including public transportation, highways, and bicycle paths that connect to central Copenhagen and the rest of Greater Copenhagen - Ballerup is home to numerous parks and forests, as well as a variety of sports and recreational facilities, making it an attractive option for families and young professionals looking for an affordable suburban lifestyle in the Greater Copenhagen metropolitan area.

Hilke Nijmeijer, Senior Portfolio Manager at CBRE Investment Management said: “Rising interest rates combined with higher property taxes have meant that, for the first time in over a decade, renting in Copenhagen is more cost effective than owning a property. Whilst the share of rental stock in Ballerup is generally higher than in the rest of the city, supply of modern rental stock is very low and the population growth is above average. The estimated new supply for the coming years is unlikely to meet demand.”

“With this acquisition, we can meet local demand for affordable, newly built rental properties with strong environmental credentials, contributing to inclusive cities in line with the strategy for this fund and CBRE IM’s long-standing commitment to sustainability.”

Jenny Tuleby, Head of Transactions and Investment Operations, CBRE Investment Management Nordics, added: “This deal further underscores our commitment to grow our footprint within the affordable housing space in the Nordics. The current market conditions present compelling opportunities and we will continue to be active within this space for the right deals.”

CBRE Investment Management (“CBRE IM”) is one of the largest investor-operators in the EMEA residential market, managing around €11 billion¹ in Assets Under Management across the firm’s investment strategies. In 2023, CBRE IM transacted €1.44 billion residential assets in Europe.

¹The figure referenced combines the investments of both direct and indirect business lines and are intended to illustrate the asset management presence of CBRE Investment Management as a whole in the European residential sector.

About CBRE Investment Management

CBRE Investment Management is a leading global real assets investment management firm with $147.5 billion in assets under management* as of December 31, 2023, operating in more than 30 offices and 20 countries around the world. Through its investor-operator culture, the firm seeks to deliver sustainable investment solutions across real assets categories, geographies, risk profiles and execution formats so that its clients, people and communities thrive.

CBRE Investment Management is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBRE), the world’s largest commercial real estate services and investment firm (based on 2023 revenue). The company has more than 130,000 employees (including Turner & Townsend employees) serving clients in more than 100 countries. CBRE Investment Management harnesses CBRE’s data and market insights, investment sourcing and other resources for the benefit of its clients. For more information, please visit www.cbreim.com.

*Assets under management (AUM) refers to the fair market value of real assets-related investments with respect to which CBRE Investment Management provides, on a global basis, oversight, investment management services and other advice and which generally consist of investments in real assets; equity in funds and joint ventures; securities portfolios; operating companies and real assets-related loans. This AUM is intended principally to reflect the extent of CBRE Investment Management’s presence in the global real assets market, and its calculation of AUM may differ from the calculations of other asset managers and from its calculation of regulatory assets under management for purposes of certain regulatory filings.