Key Takeaways
- • CBRE Investment Management successfully issued a €49 million (DKK 368 million) Danish bond secured by three residential assets acquired over the past two years, including the most recent Ballerup acquisition.
- • The fund acquired a portfolio of two multi-family properties in Ballerup, Greater Copenhagen, comprising 16,974 square meters of residential space with 222 affordable rental units targeted at middle-income households.
- • The residential assets hold DGNB Gold environmental certification, reflecting high sustainability standards across the portfolio.
- • The five-year bond carries an all-in fixed interest rate coupon of 3% and includes extension options up to 30 years, with fund-level loan-to-value remaining well below the 25% target.
- • The bond issuance positions the fund to access new market opportunities while maintaining an attractive cost of debt relative to other European countries, with minimal impact on weighted average cost of debt.
Summary
CBRE Investment Management has closed on the acquisition of a residential portfolio in Ballerup, Greater Copenhagen, as part of a broader debt financing strategy to optimize its balance sheet and fund future acquisitions. The portfolio comprises two multi-family properties containing 16,974 square meters of high-quality residential space with 222 affordable rental units designed for middle-income households. These assets represent the most recent transaction among three Danish residential properties that secure a newly issued €49 million (DKK 368 million) bond.
The bond issuance, financed through a leading Danish financial institution and a top-three Danish mortgage lender, marks a significant milestone in the fund's capital structure evolution. The facility carries a five-year maturity with extension options extending up to 30 years in total, and an all-in fixed interest rate coupon of 3%. According to Duco Mook, EMEA Head of Treasury & Debt Financing at CBRE IM, the closing represents "an exceptional achievement in the context of today's challenging credit market" and positions the fund strategically for continued growth.
The debt will be used to repay the outstanding balance on the fund's subscription facility while creating balance sheet capacity for future acquisitions. The fund's loan-to-value ratio will remain well below the 25% target following the issuance, limiting the impact on the weighted average cost of debt. The Ballerup assets feature DGNB Gold environmental certification, reflecting CBRE IM's commitment to high-quality, sustainable residential investments. The bond financing strategy demonstrates the firm's ability to optimize returns through diversified financial products while securing competitively priced debt in the Danish market relative to other European jurisdictions.
The bond issuance, financed through a leading Danish financial institution and a top-three Danish mortgage lender, marks a significant milestone in the fund's capital structure evolution. The facility carries a five-year maturity with extension options extending up to 30 years in total, and an all-in fixed interest rate coupon of 3%. According to Duco Mook, EMEA Head of Treasury & Debt Financing at CBRE IM, the closing represents "an exceptional achievement in the context of today's challenging credit market" and positions the fund strategically for continued growth.
The debt will be used to repay the outstanding balance on the fund's subscription facility while creating balance sheet capacity for future acquisitions. The fund's loan-to-value ratio will remain well below the 25% target following the issuance, limiting the impact on the weighted average cost of debt. The Ballerup assets feature DGNB Gold environmental certification, reflecting CBRE IM's commitment to high-quality, sustainable residential investments. The bond financing strategy demonstrates the firm's ability to optimize returns through diversified financial products while securing competitively priced debt in the Danish market relative to other European jurisdictions.
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