Northern Europe real assets manager Niam is expanding its offering through a Danish housebuilding joint venture with Milton Huse.
The two companies have formed Kronhusene, a company that will own Milton Huse’s current B2B business, which includes land with the potential to build over 1,200 terraced houses in Denmark.
Niam will have 75% interest in Kronhusene alongside a 25% stake owned by Milton Huse’s founder Erik Rehnquist.
The companies expect the joint venture – aimed at constructing and operating terraced house projects – to develop around 500 homes per year.
Kronhusene already has one construction project under way and is expected to begin several more this year.
Michael Berthelsen, country manager for Niam, said: “We are pleased to once again expand our collaboration with Milton Huse, having previously acquired a number of residential projects from them.
“We consider Milton’s B2B business to be a professional and complete setup that, with sufficient capital from Niam, can be lifted to new levels. We expect that together we can accelerate our common ESG ambitions and continue to have a sharp focus on our tenants’ future housing needs.”
Henrik Gerdin, fund manager at Niam, said the company, which has been an active player in the Nordic residential market since year 2000, has executed a wide range of transactions across the entire spectrum of the market, worth over €3bn in total.
Gerdin added: “Building on this success, I am excited to continue implementing this winning strategy and leveraging our expertise in the Nordic region over the coming years.”
Erik Rehnquist, founder of Milton Huse, said: “We aim to establish a unique market position as the leading end-to-end property group by combining Milton Huse’s expertise in homebuilding with Niam’s experience in operating rental properties and access to growth capital.
”With the growing demand for rental housing, our objective is to build a large-scale portfolio of appealing terraced houses within a few years, which will be built in accordance with the DGNB Gold-standard.”
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