Property overview
Teglraekkerne (“Copenhagen Single family Rental Portfolio II”) is a $14 million single-family rental portfolio located in the growing western corridor of Naerheden in Copenhagen, Denmark. The portfolio consists of 26 high quality homes constructed in 2023. The homes were purchased off-market, directly from the developer providing higher than typical quality for rental properties. These 26 homes are an accretive addition to GCREIT’s existing single-family rental portfolio in Copenhagen and assists in growing the portfolio to a larger, more institutional sized holding.
The homes are a five-minute walk from the Naerheden train station which provides direct access to the city center and greater Copenhagen area. This specific area within Denmark is highly regarded for its interconnected infrastructure, green areas, and range of different housing types. As such, the Naerheden neighborhood has seen a large amount of development in the past decade. In 2015, a large development plan to build more residential units, public communication buildings, and social infrastructure including green areas and playgrounds began. Approximately 5,000 people have moved into these residential buildings in the past ten years, and demand continues as evidenced by submarket rental growth forecasted to exceed Copenhagen’s overall rental growth forecast.
GCREIT is pleased to add an additional 26 homes to its current direct holdings in Copenhagen. As the gap between home price growth and rent growth continues to widen and drive household demand into the rental market in both Copenhagen and all throughout Europe, the Fund remains convicted in rental housing in favorable submarkets of Copenhagen.
Global city
The Copenhagen single-family rental market continues to benefit from strong population growth which has primarily been driven by Copenhagen and Denmark’s high quality of life. Copenhagen was recently ranked the world’s most livable city by the Economist Intelligence Unit, and the Danish economy continues to remain stable with low and strong projected GDP growth.
Denmark has experienced population increases each year for the past decade which exceeds the European average population growth, especially in the 30–45 year age group, which is the target single-family rental resident. Given these tailwinds, Copenhagen remains a favorable location for institutional investors like GCREIT.
