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Wednesday 18 September 2019

Danes act on cuckoo funds after scathing UN report

  

Cycling commuters in Copenhagen old town. Photo: Getty
Cycling commuters in Copenhagen old town. Photo: Getty

Frances Schwartzkopff

The Danish government has pledged to resolve the price pressure coming from 'cuckoo funds', which mirrors the squeeze on housing here in Ireland.

Earlier this year, the United Nations condemned both Denmark and Ireland for allowing multinational funds to buy up vast swathes of properties and then rent them out at high cost.

Paved with bike paths and dotted with cafés, Copenhagen is considered among the world's 10 best cities in which to live.

It's also suffering from a housing shortage, particularly of affordable places for young families and students.

The city's appeal has attracted offshore investors looking for safe returns.

Denmark's Housing Minister Kaare Dybvad has made clear he wants to reduce the influence of big international funds, which he warns are turning Copenhagen into an enclave for the wealthy.

Mr Dybvad said he doesn't want to point the finger at individual funds, but in a recent interview he mentioned Blackstone Group as an example of the kind of buyer he's targeting.

But Blackstone said it's a long-term investor in the Danish market, and that it complies with all regulations.

The situation mirrors that in Ireland where Finance Minister Paschal Donohoe is under pressure to address the influence of Reits and foreign investors in October's Budget.

Irish Independent

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