European residential real estate company Heimstaden is selling its Icelandic residential company to Fredensborg in a deal it says will accelerate its exit from the country and advance the firm’s deleveraging efforts.
Heimstaden, which acquired Heimstaden ehf in 2021 from Fredensborg ICE ehf, said it has agreed to sell the residential company back to the previous owner for SEK1.5bn (€13m). Heimstaden ehf has a property book value of SEK6bn in addition to 41 units of ongoing projects.
Heimstaden said the disposal follows a previously communicated strategy to continue the deleveraging of its business, adding that the sale proceeds will be used for liability management purposes.
Heimstaden’s CEO, Helge Krogsbøl, said: “The sale of Heimstaden’s Icelandic portfolio offers an attractive opportunity to accelerate our exit from the Icelandic market, advance our deleveraging, and capture a significant portion of the ongoing exit strategy’s upside.”
To read the latest edition of the latest IPE Real Assets magazine click here.