Allianz Real Estate and Heimstaden Bostad have pumped SEK7bn (€650bn) into their Swedish residential joint venture and extended their partnership into Germany.
Allianz and Heimstaden will provide SEK3.9bn and SEK3.06bn respectively in equity for their existing Swedish partnership to be used to repay debt. The partnership was created late last year with Allianz Real Estate investing SEK7.9bn for a stake in Heimstaden’s €3bn Swedish residential portfolio.
As part of the new partnership in German, Heimstaden is making a €262m investment in a portfolio of properties owned by Allianz. The new joint venture will own 38 properties with 3,135 homes located in Düsseldorf, Greater Munich, Cologne, Bonn, Berlin, and Stuttgart with a current occupancy of 97%.
The companies said they plan to jointly implement and accelerate a sustainability programme within the German portfolio, with €83.9m to be committed to ESG improvements.
Nicole Pötsch, head of investments and strategic development for North and Central Europe at Allianz Real Estate, said: “After a successful cooperation in the first year in Sweden, we are very pleased to further expand our partnership with Heimstaden Bostad into Germany.
“With two experienced, like-minded partners working together, we are well positioned to deliver the ESG improvements needed to meet our decarbonisation targets.”
Christian Fladeland, CIO at Heimstaden, said: “We are happy to join forces once again with Allianz, a partner who matches our ambitions and commitment to responsible and sustainable housing. Together we create a strong voice in the residential real estate sector, and we look forward to working with Allianz Real Estate in strengthening our German footprint and adding new, strategically important locations to our portfolio.
“Following the transaction, Allianz becomes our third largest institutional partner with more than SEK15bn invested with us.”
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