The Greater Manchester Pension Fund (GMPF) has participated in a SEK3.34bn (€299m) fundraising by European residential real estate manager Heimstaden Bostad.
Heimstaden Bostad said the £28bn (€43bn) UK local government pension scheme and existing shareholders have provided equity capital to help finance an announced SEK10.12bn bond buyback and strengthen the company’s balance sheet.
Councilor Gerald Cooney, chairman of Greater Manchester Pension Fund, said: “We are excited to partner with Heimstaden Bostad, a best-in-class residential real estate owner-operator with a strong track record.
“Their philosophy of creating long-term value by focusing on evergreen and sustainable investments aligns perfectly with our own strategic objectives and pledge to reach net-zero carbon emissions across our investments by 2050.”
Steen Lønberg Jørgensen, the head of capital raising and client relations at Heimstaden, said: “The new equity shows our shareholders’ strong commitment to the company, a continuous support that has enabled recent years’ growth towards becoming a leading and commercially successful residential real estate company.
“We are especially pleased to welcome Greater Manchester Pension Fund, one of the UK’s leading institutional investors. We share a commitment to sustainable and responsible investments on behalf of all stakeholders and are looking forward to developing our relationship even further.”
Separately, Heimstaden Bostad announced the completion of the buyback of senior unsecured bonds, which it said was fully financed by existing liquidity available to the company and the equity raised from new and existing shareholders.
The European residential real estate company has around 158,000 homes across nine countries worth around SEK345bn.
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