Swedish pension fund KPA Pension announced it is investing SEK1.49bn (€144m), buying five residential projects from property developer Skanska, located in southern Sweden - in Malmö, Helsingborg, Ängelholm and Lund.
The Folksam subsidiary said the developments would comprise around 600 apartments and have 37,600sqm of space in total, while Skanska said it expected to complete construction of the various local projects between 2021 and 2024.
Lars Johnsson, Folksam group real estate director, said: “With this deal, we are continuing our successful collaboration with Skanska in housing development and complementing our existing housing portfolio with a few more good and sustainable properties in attractive rental markets.”
Skanska said the multifamily portfolio it was selling included a range of products, from townhouse-style condominiums to eight-storey buildings.
The firms said all projects were being developed with a strong focus on sustainability and minimal environmental impact.
Johnsson said the SEK462bn pensions and insurance group had also acquired a nursing home in Helsingborg from Skanska earlier this summer, with the municipal pension fund KPA Pension adding that it had high ambitions for this latest development, particularly regarding sustainability.
Britta Burreau, KPA Pension chief executive, said residential property was a good investment for KPA Pension’s long-term asset management.
“We are now increasing our allocation to property that gives a higher return,” she said.
To read the digital edition of the latest IPE Real Assets magazine click here.
