Casa Nord is a $34 million residential rental portfolio, consisting of 84 individual units located in four distinct estates and submarkets outside of Copenhagen, Denmark. The deal was purchased off-market, directly from the developer of the portfolio. Built between 2019-2022, the class A housing portfolio was 100% occupied at time of acquisition, with mid-level rental rates, consistent with the REIT’s housing strategy to focus on middle-income renters and capture a wide demographic.
The properties are located within 30 minutes of Copenhagen’s city-centre and are in walking distance to highly rated schools and public transportation. All four assets are currently rated as Energy Label A or are in-process to receive the Energy Label A designation.
The combination of Denmark’s strong economy and AAA credit rating, Copenhagen’s highly favorable demographics and projected growth, and the Copenhagen rental market’s overall relative resiliency makes this portfolio a foundational asset, particularly as we look to expand our direct European portfolio over the long-term.
Copenhagen, population of two million, has one of the most robust demographic growth forecasts of any city in Europe. The 30-44 age group is projected to have the highest population growth rates, further fueling demand for rental housing over the medium-term.
More than 60% of Copenhagen’s real estate investment activity occurs in the housing sector and has seen the highest transaction volume of any asset class over the past decade. From a short-term perspective, the U.S dollar’s rapid appreciation since 2021 may provide an additional lift to returns of European assets, according to Nuveen’s Research team.