Barings has acquired a 269-unit residential development project in Copenhagen, on behalf of a European value- add real estate strategy, from Catella. Catella will retain a minority stake and act as development manager.

The 18,482 sqm GLA development on a brownfield site in Herlev, a north-west suburb of Copenhagen, already benefits from zoning in-place and a building permit. The scheme is designed to high ESG standards, targeting DGNB Gold certification, the highest possible EPC rating (A2018) and WiredScore Platinum.

The development is located in close proximity to Herlev station, connecting the scheme by S-train to Copenhagen Central Station in c. 25 minutes. It will further benefit from the new light rail station expected to be completed later this year. Construction is to begin in Q3 2025, with the project expected to be finalised in phases by mid-2028.

The project marks Barings’ entry into Denmark, having been active in the Nordics since 2010 where it currently manages EUR 970 million in real estate assets on behalf of a variety of strategies.

“The Copenhagen area presents an opportune environment for residential development, with demand outweighing supply and this set to increase further. Entering the Danish market through a partnership with Catella, a highly regarded specialist with deep-rooted experience in Copenhagen’s residential sector, aligns well with our strategy of working alongside local experts to deliver high-quality, sustainable living spaces across Europe. We look forward to breaking ground on the scheme and bringing much needed homes to this dynamic and growing city,” says Andreas Norberg, Managing Director and Head of Nordics at Barings Real Estate.

“The build-to-rent residential sector is one of Europe’s most resilient, benefitting from strong demographic drivers and a fundamental lack of supply which will continue to stimulate rental growth over the short, medium and long term making it a key strategy for our pan-European value add strategies. As demonstrated by this off market acquisition executed by our Nordic team, the deal pipeline generated by our platform is a key strength and we look forward to announcing further acquisitions for the strategies in our value-add series in the near future, delivering on our conviction that this is a compelling time in the cycle to deploy capital,” says Rory Allan, Managing Director and Portfolio Manager for the European closed-end value-add real estate fund series at Barings Real Estate.

“We are excited to join forces with Barings on its first real estate investment in Denmark. It will significantly enhance the project’s prospects. It also demonstrates how Catella generates value-add business opportunities across our entire platform,” says Morten Gustafson, Managing Director, Catella Investment Management Denmark.