Patrizia has bought a residential development project in Sweden from property fund manager Slättö for €100m.
The development, in Malmö in the suburb of Hyllie, is scheduled to complete in the fourth quarter of next year and will deliver 427 residential units comprising one to four-bedroom apartments for rent, Patrizia said.
Following the deal, Patrizia’s Sweden property portfolio amounts to €400m in managed assets with the residential sector representing around 20% of the portfolio.
Jörg Laue, head of transactions for Patrizia in the Nordics, said: “The units will be finished to a high standard and will help meet the growing demand for modern apartments in Malmö.
“We continue to look for opportunities to grow our exposure to the residential sector in Sweden, particularly around Stockholm, Malmö, Gothenburg.”
Johan Lagerdahl, country manager and head of asset management for Patrizia in Sweden, said: “The defensive profile of the Swedish residential sector means that we will be able to deliver secure and stable income to our investors.
“The market is underpinned by favourable supply-demand dynamics, due to a growing urban population and limited availability of suitable housing.”
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