London, [24 June 2021] – KKR, a leading global investment firm, announced that KKR is investing alongside Fokus Asset Management A/S (“Fokus”), a leading asset manager in Denmark, to acquire a residential portfolio of 309 apartments in nine properties in Central and Greater Copenhagen.
The investment is structured as a joint venture between Fokus and KKR. It represents the first investment as part of a larger thematic strategy that will build up a portfolio of multifamily properties and townhouses in the Greater Copenhagen area and other Danish growth cities. The joint venture combines one of the largest global investment platforms with one of the leading Nordic asset management players. Fokus will act as operating partner of the assets.
The Danish metropolitan residential market is characterized by strong fundamentals and significant growth potential. Denmark has a sound welfare system and national economy that was impacted less severely by Covid-19 compared to other European economies and thus is expected to recover faster. Driven by robust economic and population growth, private housing demand in metropolitan areas will accelerate in the upcoming years leading to excellent development opportunities for the assets.
Seb d’Avanzo, European Head of Acquisitions at KKR Real Estate, comments:
“We are delighted to make our first investment in the Danish residential sector. The strong and stable fundamentals of the region supported by excellent urbanization and demographic macro trends as well as sustainability-led growth provide an excellent fit for our investment philosophy. Together with Fokus and its strong execution and asset management capabilities, we look forward to expanding the residential footprint in Denmark. This transaction underlines our strong conviction in high-quality residential markets across Europe and adds to our prior residential investments in Germany, Spain, England and Ireland.”
Tonny Nielsen, CEO & Partner at Fokus Asset Management, said:
“This value-add investment platform works well alongside our more existing core products. We are grateful to work with and invest alongside KKR, one of the leading European and Global real estate players. We look forward to building the residential portfolio in Denmark and the Nordics alongside the KKR team with a goal to even further increase our capital deployment over the next years.” The investment is being made through real estate funds managed by KKR. KKR and Fokus were advised by Bech Bruun, Colliers, CBRE, Cowi, Deloitte and Sidley Austin.
KKR is a leading global investment firm that offers alternative asset management and capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of The Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.