Real estate manager NREP is investing SEK6.5bn (€554m) to become a majority stakeholder in Klövern, a Swedish housebuilder owned by Corem Property, ALM Equity and Broskeppet Bostad.
NREP, investing on behalf of its European value-add real estate fund NSF V, is buying a 51% interest in Klövern for around SEK2.5bn, including a dividend. As part of the deal, NREP also intends to invest a further SEK4bn over time to acquire additional shares issued, lifting its stake in Klövern to 65%.
Following the completion of the transaction and first share issue, Corem’s ownership will amount to 17%. The owners will then be offered the opportunity to retain their ownership by participating in future share issues.
NREP’s investment, together with external financing, will enable Klövern to complete its 24,000 homes project portfolio in Sweden.
Rune Kock, CEO of NREP, said: “Sweden has increasing population growth, and this acquisition enables us to meaningfully contribute to the supply-demand gap of housing, whilst growing our portfolio in collaboration with mission-aligned partners. Klövern has a strong residential portfolio which, in combination with our strategy and ambition in the residential segment, has great potential for development.”
Rutger Arnhult, CEO at Corem, said the deal ensures Klövern’s future financing and development, adding that “for Corem, the deal also frees up liquidity that can be used to pay off bonds we have maturing in 2024. This strengthens us further”.
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