On April 24th, Copenhagen, Cushman & Wakefield RED hosted a conference for current and potential international investors. In this context, the forty biggest real estate investors flew to Denmark to learn more about the North as an investment market.
“Denmark and the remaining Nordic countries are still very attractive for foreign investors. 27 out of the 40 of the investors do not have investments in Denmark yet, however, do have an investment strategy for Denmark”, informs Nicholas Thurø, Managing Partner RED. He expects a majority of the participants are to be found on the Danish market before the end of the year.
Investors repeatedly mention stability and growth as the primary reason for their interest in the Nordic countries. Markets with growth are often characterized by having great uncertainty due to either political or economic conditions. However, the Nordic countries have a rare combination of stable political and economic environment. This is due to growth within the economics and cities.
High expectations for logistic properties
Investors like German Deka, American Starwood Capital, and Swiss USB were some of the investors who turned up to hear Chief Mayor Frank Jensen’s talk. The Chief Mayor talked about the council’s investments in Copenhagen, and how they will meet the booming economic growth that Copenhagen has experienced over the last 20 years. To the conference, a panel of experts from Cushman & Wakefield Nordic offices talked about the different investment possibilities, and a broad consensus was that nobody expects a further yield compression in the North.
The highest expectations are within the logistic segment where investors expect the most massive growths over the next six months. Recently, Norway just sold a large logistic property with a 20-year contract with a historic low yield on 4,75 pct.