ActivumSG Fund Agrees to Buy CASA in Third Corporate Acquisition for Pan-European Strategies
1st July 2021
- CASA is one of Denmark’s largest developers and construction contractors in build-to-rent sector.
- CASA purchase to follow Fund VI’s corporate acquisitions of VanWonen and Odyssey Hotel Group.
- Fund VI will have committed more than 80% of equity raised from international investors when CASA transaction closes.
(Jersey) 1st July, 2021 – ActivumSG Capital Management, which focuses on turnaround and special opportunity investments in real estate, has agreed to acquire CASA, one of the largest residential developers and construction contractors in Denmark’s build-to-rent sector, on behalf of its latest fund. It will be the third corporate acquisition by ActivumSG Real Estate Fund VI after VanWonen and Odyssey Hotel Group, folding a new territory into its pan-European residential strategies, which already span the Dutch, Portuguese and Spanish markets.
Fund VI will acquire CASA from a fund overseen by CataCap Management. The parties agreed not to disclose details of the transaction, which is scheduled to close in the coming weeks.
Saul Goldstein, Founder and CEO of ActivumSG, said: “CASA is a fresh example of our unconventional approach to accessing strong real estate investment themes through corporate acquisitions and other indirect routes. In this case our fund will gain exposure to the strong fundamentals of the Danish housing market and the dynamic build-to-rent sector, while avoiding the herd in competing for standing property assets. Corporate acquisitions have proven to be a great way to generate attractive returns for our investors, as highlighted by the successful exit of Instone in 2018.”
Founded in 2006, CASA has grown into one of Denmark’s leading developers and general construction contractors in the build-to-rent sector, with 265 full-time employees and expects to generate sales of more than €400 million in 2021. The company focuses primarily on mid-market and affordable housing in Aarhus and Copenhagen, the country’s two largest cities.
Demand for rental accommodation is on the rise in Denmark, driven by increasing urbanization and tenants wanting greater flexibility. An undersupply of residential housing stock underpins rental growth prospects that have attracted strong inflows of investment in multi-family housing by international institutions.
Torben Modvig, CEO of CASA, said: “We have a large, secured order book of construction contracts and a very healthy development pipeline, which give us good visibility for the future. Having ActivumSG’s Fund VI as a new investment partner will be a game-changer as we look to ramp up our development pipeline and scale up our platform. It opens a very exciting new chapter of growth for us all at CASA.”
Fund VI will have committed more than 80% of the equity raised from international investors following the purchase of CASA. Its portfolio includes Dutch housing developer VanWonen and European hospitality operator Odyssey Hotel Group, while its other residential investments include development projects in Portugal and Spain. Among its other investment strategies, Fund VI is anticipating the hotel sector’s recovery from the impact of Covid-19 through its investments in Odyssey and the luxury Nobu Hotel Barcelona.
Corporate acquisitions, lending or debt investments, development and direct property investments are among the ways that ActivumSG’s funds invest. The first corporate acquisition by an ActivumSG fund generated more than a fourfold return on invested capital for Fund III when it listed Instone Real Estate on the Frankfurt Stock Exchange in 2018.