Key information
- SectorResidential housing development
- TypeMezzanine loan
- StrategyPrivate Debt
- CertificationDGNB Gold
Modern residential complex
Bridging financing gaps in European residential real estate through structured lending
Private Debt and Credit Alternatives | Denmark
2025
Year of investment
$9.986 million
Loan size
Denmark
Geography
About
In February 2025, Schroders Capital’s Private Debt & Credit Alternatives ('PDCA') platform closed a senior mezzanine loan secured against a newly developed residential complex in Skovlunde, a western suburb of Copenhagen. The project comprises 168 residential units, including 106 modern apartments and 62 terraced houses, along with a 155 car underground parking facility.
The complex was fully let by January 2025, just months after construction completed, underscoring the area’s strong demand for high-quality housing. The property is certified to DGNB Gold standard, recognising sustainability considerations in its design and construction1.
The financing supports the transition of the asset toward its long-term ownership structure and eventual sale. Schroders Capital acted as the mezzanine lender, alongside a senior mortgage provided by a Danish bank.
Why we invested
This investment reflects our strategy of identifying and responding to capital dislocations in high-quality, income-generating real estate. The transaction was sourced in a context where traditional financing routes were constrained, presenting an opportunity to provide a tailored solution supported by strong fundamentals.
The residential complex benefits from a desirable location in a well-connected and growing Copenhagen suburb, with a balanced unit mix and robust tenant demand. Its full occupancy shortly after completion further reinforced our confidence in the underlying asset.
As with all lending activities, loan performance depends on ongoing borrower engagement and prevailing market conditions. Our underwriting considered the asset’s quality, income stability and alignment with sustainability standards.
Value creation
By providing structured mezzanine financing, Schroders Capital played a role in facilitating the financial completion of this residential development. Our platform’s ability to respond flexibly to market inefficiencies enables us to support real estate sponsors in transitioning assets toward longer-term ownership or sale.
Through our expert teams within PDCA, we bring together specialists across real estate debt and credit, which helps us evaluate lending opportunities with both a capital preservation and value-add mindset. In this case, our local expertise and rigorous diligence process allowed us to assess the deal’s risk profile and structure a solution aligned with our fund’s objectives.
Sustainability
The residential complex is certified to DGNB Gold standard, a widely recognised sustainability certification developed by the German Sustainable Building Council1. This reflects design and construction choices that consider environmental performance, occupant wellbeing and resource efficiency.
Schroders Capital’s PDCA platform integrates sustainability considerations across its investment and underwriting processes, recognising the growing importance of environmental and social factors in the long-term performance of real assets and credit investments.
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Important information
Marketing material for Professional Clients only. Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested. All investments involve risks including the risk of possible loss of principal. Any reference to regions/ countries/ sectors/ stocks/ securities is for illustrative purposes only and not a recommendation to buy or sell any financial instruments or adopt a specific investment strategy.