Swedish housing company Heimstaden is buying a large Danish residential portfolio, including the real estate company HD Ejendomme, from real estate private equity firm Niam for DKK12.1bn (€1.63bn) in what Niam says is the largest real estate transaction ever in Denmark.
Christian Fladeland, co-CIO of Heimstaden, said: “We are very pleased to announce the acquisition of an attractive portfolio with a strong operational platform, and with HD Ejendomme we will significantly expand our geographical footprint and operational reach.”
The portfolio includes 152 residential properties comprising 6,237 residential units, most of which are terraced houses in large and mid-sized cities, such as Odense, Vejle, Horsens, Silkeborg and Randers.
It also includes 35 commercial properties located near the residential assets.
Niam said DKK 12.1bn price tag made it the largest real estate transaction in Denmark, according to Real Capital Analytics.
Niam bought HD Ejendomme in 2017 with €560m of residential and commercial assets.
Fladeland said the acquisition consolidated Heimstaden’s position as Denmark’s largest residential real estate company.
“The Danish housing market remains favourable with good economic prospects and strong demographic trends,” he said.
Heimstaden Bostad will own the portfolio and all employees from HD Ejendomme will be integrated into Heimstaden Denmark.
Before the purchase, the Swedish firm said its Danish portfolio consisted of about 10,000 homes concentrated around Copenhagen and major cities.
“The combined company will deliver a strong platform for property management throughout the country and enable further growth anchored in a value-based business model and long-term investment perspective,” Heimstaden said.
Henrik Gerdin, fund manager at Niam, said: “We are very pleased to have successfully implemented our strategy to build a large and attractive residential asset management portfolio, while improving HD Ejendomme and its operational key figures.”
He said the €3.7bn management firm had solid knowledge and experience of buying and managing residential portfolios in the Nordic region, and would continue to be active in transactions, asset management and project development.
The transaction is expected to close early in 2021, subject to antitrust clearance.