Studentbostäder i Sverige is expanding into Denmark and acquires newbuild project for circa 1.6 BNSEK with 578 student apartments in Copenhagen
Studentbostäder i Sverige AB (publ) ("SBS") has entered into an agreement with Gefion Group to acquire a newbuild project with up to 578 student apartments in Copenhagen, Denmark. The project has an underlying property value of circa 1,175 MDKK, corresponding to circa 1,600 MSEK. The acquisition is intended to be financed with a combination of available cash and debt, including senior financing via the Danish realkredit mortgage-credit system at a LTV of circa 64 percent.
The newbuild project is attractively located in Copenhagen's Amager Øst city district, approximately 5 km southwest of Copenhagen city center and minutes from the popular oceanfront Amager Beach Park. The property complex is adjacent to Femøren Metro Station which provides expedited access to Copenhagen's many educational institutions, city districts and attractions. Door-to-door, Copenhagen city center can be reached in ~10 minutes and Copenhagen's two largest universities can be reached in ~18 minutes.
– Copenhagen is an attractive city for students, and where there is a considerable lack of student housing, similar to many Swedish cities with higher education institutes. This project is being constructed in line with our new concept where the student housing is more than just an apartment. Gefion Group has succeeded with providing students with access to a unique student living with well-planned common areas, rooftop terraces, and on-site fitness center, café and grocery store. Adding ot that one of the better locations in Copenhagen will ultimately contribute to an extraordinary quality of life, Rebecka Eidenert, the CEO of Studentbostäder i Sverige, comments.
The complex will feature up to 578 youth and student apartment units and four commercial units, totaling 21,217 sq.m. of gross lettable area. The 578 student apartment units have an average size of 31 sq.m. (gross area) and feature private in-suite kitchens and bathrooms. The newbuild project is tailored for student-living, with on-site commercial amenities including a grocery store, fitness center, and a café. The property complex also features multiple shared ocean-view rooftop terraces, common-area kitchens, and parking.
The underlying property value is estimated at circa 1,175 MDKK and is expected to generate annual rental income of circa 50 MDKK, of which more than 90% is attributable to student apartment units. Part of the commercial space is let on a 15-year lease with Netto; Denmark's largest grocery retailer. The 578 student apartment units are anchored by the non-profit foundation Housing Foundation Copenhagen-fond, tha have signed a 10-year block lease for 206 units.
– We continue to be acitve in the real estate transaction market and create growth both through our in-house project development arm as well as through attractive new acquisitions, such as this asset in Copenhagen. We have a set target to become the leading student housing property company in the Nordics, and to be able to make our first acquisition outside of Sweden no more than four months after our stock exchange listing is a testament to our strength. This acquisition will provide us with an efficient management property with a stable cash-flow which is a good complement to our development property pipeline. Through this acquisition we deliver both stability and growth to our shareholders, Sofia Folstad, Head of Transactions and Finance Studentbostäder i Sverige, says.
Gefion Group is the developer of the project and is responsible for the construction, first-time leasing and turn-key delivery of the complex. Construction of the complex is ongoing with completion and handover scheduled in two phases. Phase one is scheduled for handover in August 2021, including 302 student apartments out of which 206 are pre-let on a block lease, a grocery store on a 15 year lease to Netto and a pre-school. Phase two is scheduled for handover in April 2022, which include 276 student apartments, a fitness center and a café.
SBS har throughout the process been represented by Pareto Securities as buy-side advisor. Bech Bruun, Plesner and Grant Thornton has acted as legal advisors in connection with the transaction.
This information is information that Studentbostäder i Sverige AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 18.30 CET on 26 April 2021.
For further information, please contact:
Rebecka Eidenert, CEO Studentbostäder i Sverige,
+46-70 786 54 54, firstname.lastname@example.org
Mangold Fondkommission AB
(556585-1267) Box 55691
102 15 Stockholm
+46 8 503 015 50
The following documents can be retrieved from beQuoted
PM Engvej Cph 20210426 ENGLISH.pdf
About Studentbostäder i Sverige (SBS):
SBS owns, manages and develops student housing in long term partnerships with municipalities, counties and universities. We offer high quality, affordable student housing and a fully digitalised rental management, to make living a seamless experience. Our goal is to become the leading student housing company in the Nordic region and the given choice for students on their way to their dream profession.