Market Report 2022

Colliers Market Report 2022

59

Hotel Industri & logistik Detail Bolig Kontor I trial/logistics R Residential Of f ice

Kromagrafen, Robert Jaconsens Vej 73, Ørestad, Copenhagen S

Continued portfolio sales The stronger competition for residential property has also sharpened investor focus on portfolio acquisitions, with the final months of 2021 seeing two high-volume transactions in this cat egory. Firstly, domestic pension fund AP Pension in a joint ven ture with BankInvest acquired property company Bostad and its portfolio of Danish residential properties at a price of approx DKK 3.4 billion. The portfolio comprised more than 70 prop erties in and around various regional growth towns and cit ies across Denmark. Secondly, Catella Residential Investment Management (CRIM) was behind the acquisition of 11 proper ties from Formuepleje, which are located mainly in and around Copenhagen and Aarhus, at a price of approx DKK 2 billion. Both transactions are in the top 5 of key transactions across all segments of the Copenhagen property market in 2021. Risk diversification, volume and large-scale operation advantages

remain the key drivers of demand for portfolios. However, in today’s investment market, where a great many players com pete for the same properties, it is an exceptionally costly affair to build a portfolio or achieve your investment goals if you only buy one property at a time. This has served to further boost the demand for portfolios, with the past 12 months seeing multiple residential portfolio transactions at prices believed to exceed the sum-of-parts value of the individual properties in separate transactions by as much as 5-10%. This portfolio premium effect is not expected to diminish within the next 12 months or so as the competition is believed to remain strong and the supply sufficiently weak. Nonetheless, this could be the time for property owners to assess the situa tion if they are already contemplating a divestment within the next couple of years as the market may quickly turn.

 EMMA STUBBERUP , emma.stubberup@colliers.com  NICOLAI THYGESEN , nicolai.thygesen@colliers.com

Predominance of foreign investors in the residential investment property market

Clear overrepresentation of core investments in residential transactions

79% Core

Vaue add 18% Value-add

core 2% Opportunistic

Risk profile

44 % Domestic

56 % International

Note: Transaction volume in Denmark, residential, by investor origins and risk profile. Source: Colliers