BUSINESS CASE – MARKET FIT & OWNERSHIP STRATEGY
SUITE 01 Denmark is conceived as a commercially grounded, design-driven residential concept positioned within an under-supplied ownership market. The focus is on high-quality, compact apartments for sale – not rent – addressing a demographic that values design, security, and long-term capital growth.
While most major Scandinavian developers continue to expand rental portfolios, SUITE 01 takes the opposite path. We believe ownership is where the next shift will occur. Rising interest rates in recent years (now around 3 % for new mortgages in Denmark) have slowed transactions, yet the structural demand for ownership remains strong – especially among educated professionals who seek stability, equity, and belonging in urban settings.
Each SUITE 01 property is therefore designed as an investable home: functional, aesthetic, and financially resilient. Units range from 50 – 80 m², with select penthouses above this range, combining liveability with attainability while maintaining clear value thresholds for the buyer.
Our buyer base spans three complementary segments:
1. End-users – young professionals and couples purchasing their first home, often dual-income and time-poor.
2. Private investors – individuals acquiring long-term rental assets or homes for their adult children.
3. Speculative buyers – investors purchasing design-led apartments for rental to the SUITE 01 target group, seeking stable, low-maintenance returns.
This layered market composition ensures healthy absorption and resilience.
Market Gap – Ownership vs. Rental
Recent market data confirms an undersupply of owner-occupied new apartments in Copenhagen compared with the volume of institutional rental projects. Institutional capital continues to prioritise build-to-rent (BTR) assets – for example, Barings’ 269-unit Copenhagen scheme with Catella – while listings of owner-occupied flats for sale fell below 1 000 in August 2025 – a record low and down ~39 % year-on-year (source: Finance Denmark). This imbalance substantiates SUITE 01’s for-sale positioning and first-mover opportunity.
From a financial perspective, SUITE 01 treats construction costs, interest rates, and energy performance as inter-dependent drivers of value. Every building will be energy-optimised to reduce running costs and enhance resale strength.
Ownership and Partnership Model
Our foundation is execution under SUITE 07 – complex restorations of listed buildings delivered to a meticulous standard and recognised across press and design media. That experience refined our ability to manage design integrity, stakeholder complexity, and communication. SUITE 01 extends this strength into new-build development. We seek partners who contribute both equity and capability – local development expertise, operational insight, and shared standards of quality.
SUITE 07 adds significant intellectual capital: concept formulation, brand architecture, design leadership, PR strategy, and the curated software layer through Society 99. These intangible assets form part of our active contribution and will be proportionally represented in the ownership structure.
Indicative Financial Frame (illustrative, to be refined Q1 2026)
· Average unit size: 50 – 80 m² (penthouses above)
· Indicative sales value (location-dependent): DKK 50 000 – 73 000 per m² (prime locations trading higher)
· Average apartment price: DKK 3.0 – 5.8 million
· Estimated build period: ~24 months
· Target gross margin (pre-financing): 18 – 25 %
· Expected IRR (investor level): 12 – 16 %
· Current rates context: Danish mortgage market remains dominated by 30-year fixed-rate bond structures, with moderating policy rates through 2025 (source: Nationalbanken & Finance Denmark).
Why Now
Owner-occupied new-build supply is tightening while institutional capital focuses on rentals. At the same time, a generation of financially stable, design-aware professionals is ready to buy – seeking homes that combine quality, practicality, and cultural alignment. This creates a clear, data-supported opening for compact, high-quality for-sale units within Copenhagen and comparable Nordic cities.
For investors, SUITE 01 represents early access to a scalable Nordic platform that balances design credibility with commercial clarity – a concept engineered to perform architecturally, socially, and financially