European residential real estate firm Heimstaden Bostad has bought a portfolio of 599 properties from Akelius in a SEK92.5bn (€9.1bn) deal.
To support the deal, existing Heimstaden Bostad institutional shareholders, which include Swedish institutions KPA Pension and Alecta will contribute SEK8bn and SEK 7.1bn of equity respectively. The Swedish Pensions Agency will add SEK1.25bn.
Heimstaden Bostad’s parent company Heimstaden AB has committed SEK8.5bn of equity towards the acquisition.
Heimstaden Bostad said it will also finance the transaction using cash at hand and a SEK65.7bn financing facility.
The acquired portfolio of homes across Sweden, Germany, and Denmark, expands Heimstaden Bostad’s existing presence in the markets.
Heimstaden Bostad already owns about 116,000 homes with a property value of SEK187bn across Europe. With the latest acquisition, the company adds 14,050 homes in Berlin, 3,592 in Hamburg, 5,934 in Stockholm, 4,107 in Malmö and 1,093 homes in Copenhagen.
The portfolio has a 98% residential occupancy and more than 99% of its SEK2.8bn per year rental income comes from regulated apartments, the company said.
Patrik Hall, Heimstaden’s chief executive officer, said: “We are happy to announce this acquisition across five thriving and attractive European cities with rich cultural legacies, strong economic growth, and passionate inhabitants with engagement for their cities and broader society.”
Over the last few years, Heimstaden Bostad has integrated properties and organisations in new and existing markets, with large acquisitions in Denmark, the Netherlands, the Czech Republic, and Germany, Hall said.
Christian Fladeland, co-CIO at Heimstaden, said: “We are growing our presence in markets where we have strong knowledge and experience, markets that share key attributes, such as supply/demand imbalance, favourable demographical trends, and growing economies.
“We are particularly pleased to grow and expand geographically in Germany, the largest and most mature residential market in Europe, and establishing a presence in Hamburg.”
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