Frederiksberg Housing Fund, managed by Frederiksberg Boligfond, has sold three residential properties in Denmark.
The sales price was approximately €134 million ($152 million).
The buyer of the properties Den Sønderjyske By, Svalegården and Peter Bangs Hus was DK Resi 2018 Propco III ApS, an affiliate of Blackstone Group.
Danish transaction volume totaled $7.9 billion during the first three quarters of 2018, which is 10 percent below the investment volume recorded in the corresponding period of 2017, according too CBRE. This supports the firm’s earlier estimate that the Danish market has possibly reached full capacity in terms of investment volume in 2017.
Residential properties remained the most attractive market segment for investors with $3.35 billion, 43 percent of the total volume, but they have recorded a 24 percent drop compared with the same period last year.
On the other hand, $1.98 billion of office properties have changed hands during first quarter–third quarter 2018, which is an 18 percent increase year-over-year.
CBRE estimated the full-year 2018 investment volume will reach $11 billion to $12.2 billion, which would be 15 percent to 20 percent below the 2017 level.
With Danish prime yields hitting the lowest levels in the past 20 years and the expected increase in the long-term interest rates during 2019, the question of current pricing is ever more present. CBRE expects the prime property yields to remain flat in the short term, and investors could possibly see upward pressure on yields in 2019.
