Barings enters Danish real estate market

Global real estate investment manager Barings has entered the Danish real estate market with the acquisition of a 269-unit residential development project in Herlev, a Copenhagen suburb. 

Purchased from property investor and residential developer Catella, who will retain a minority stake and manage the development, the 18,482 m2 project is slated to begin construction in Q3 2025 and be completed by mid-2028. 
The development has already secured zoning and building permits. Designed with high ESG standards in mind, the project aims for top-tier certifications, including DGNB Gold, the highest EPC rating (A2018), and WiredScore Platinum.
Located near Herlev station, the development offers a 25-minute commute to Copenhagen Central Station via S-train and will also benefit from a new light rail station opening later this year. Construction is scheduled to start in the third quarter of 2025, with phased completion expected by mid-2028.
This project represents Barings' first investment in Denmark, adding to their existing Nordic portfolio of €970 mln managed across various strategies since 2010.
Andreas Norberg, managing director and head of Nordics at Barings Real Estate, said: “The Copenhagen area presents an opportune environment for residential development, with demand outweighing supply and this is set to increase further. Entering the Danish market through a partnership with Catella, a highly regarded specialist with deep-rooted experience in Copenhagen’s residential sector, aligns well with our strategy of working alongside local experts to deliver high-quality, sustainable living spaces across Europe.”
Rory Allan, managing director and portfolio manager  for the European closed-end value-add real estate fund series at Barings Real Estate, said: "The build-to-rent residential sector is one of Europe’s most resilient, benefitting from strong demographic drivers and a fundamental lack of supply which will continue to stimulate rental growth over the short, medium and long term making it a key strategy for our pan-European value add strategies. As demonstrated by this off market acquisition executed by our Nordic team, the deal pipeline generated by our platform is a key strength and we look forward to announcing further acquisitions for the strategies in our value-add series in the near future, delivering on our conviction that this is a compelling time in the cycle to deploy capital.”
Morten Gustafson, managing director, Catella Investment Management Denmark, said: “We are excited to join forces with Barings on its first real estate investment in Denmark. It will significantly enhance the project’s prospects. It also demonstrates how Catella generates value-add business opportunities across our entire platform.”