Barings expands Danish portfolio with Copenhagen resi project

Global real estate investor Barings has purchased a project to build 380 homes in Greater Copenhagen on behalf of a US insurance company.

Smedeland 28 - Copenhagen

This is their second investment in the Danish real estate market, which they entered earlier this year.
Acquired from Jensen & Nielsen Gruppen, the development, called Smedeland 28, will include 380 homes, nine retail spaces, and 270 parking spots. It's designed with high energy efficiency standards and will offer modern amenities, balconies, and green spaces. A supermarket will also be part of the development, making it a central point in the area.
Located in the Hersted masterplan, a large urban regeneration project outside Copenhagen, the development is close to a new light rail station for easy access to the city center. Construction is expected to finish in phases between late 2027 and mid-2028. Barings has ensured all necessary permits and zoning are in place, and the seller will guarantee rent for the remaining commercial units.
Andreas Norberg, managing director and country head Nordics at Barings Real Estate said: “Following our entry into the market earlier this year with the acquisition of a build-to-rent scheme, this transaction reflects our conviction in the strength of the Danish living sector. Smedeland 28 is located in Greater Copenhagen’s most dynamic regeneration area, boasting excellent connectivity, strong ESG credentials, and robust local demand which make it a compelling addition to our European residential portfolio.”
Gunther Deutsch, managing director, head of European Transactions and Country Head Germany at Barings Real Estate, said: “This transaction demonstrates our ongoing commitment to sourcing high-quality residential opportunities in Europe’s most dynamic markets. We anticipate that 2025 will be our strongest residential investment year ever with approximately €1 bn invested into BTR, BTS and PBSA. 95% of this capital will be invested in joint ventures with developers for new products.  We continue to have significant appetite and capital to deploy across Europe through a range of strategies and investment structures, including joint ventures with local developers.”
Thomas Linneberg, CEO, Jensen & Nielsen Gruppen, said: “The project will meet the market demands focusing on affordable living in a high-quality standard for tenants. We have worked intensively to optimise the building design with our advisors and develop solutions that minimise energy consumption, collaborating with one of the global leading companies in energy efficiency for buildings. We look forward to and are honoured to work with Barings and further enhance the project, ensuring an attractive place for families to live, as well as to establish retail and shops.”
Greater Copenhagen's real estate market is performing well, driven by population growth and a housing shortage. Since 2012, prime rents in the area have increased by almost 60%, and this upward trend is expected to continue.
Gorrissen Federspiel provided legal advice to Barings, while Colliers advised the seller.