Savills Investment Management is adding a €100m residential portfolio in Sweden to its European living platform.
The international real estate manager said it has agreed to buy the portfolio of six fully-leased assets from developer K2A Knaust & Andersson Fastigheter.
The assets are located in Uppsala, Västerås and Gävle. The buildings in Västerås and Gävle were built between 2019 – 2021 and comprise 359 apartments, the manager said, adding that the Uppsala buildings, comprising 216 apartments, are currently being finalised.
Patrick Au Yeung, senior European living fund manager at Savills IM, said: “We believe the time is now for the European residential sector. The fundamentals are robust, and the supply/demand imbalances are acute and likely to remain persistent.”
Marc Gonzalvez, responsible for pan-European residential acquisitions at Savills IM, said the firm looks forward to acquiring more portfolios of similar quality across Europe and will continue to focus on assets with a strong ESG story via existing credentials or achieved following active asset management.
Gonzalvez added: “We believe the coming quarters will provide an historically attractive entry point for investors looking for exposure to the growing European residential sector.”
Lisen Heijbel, the head of investment Nordics at Savills IM, said: “The strong affordability of this portfolio creates a solid long-term leasing profile and an attractive risk-adjusted return profile for our investors.
“With rising construction costs across Europe, we feel that a price per sqm of €3,750 reflects an attractive entry point in the Swedish market, and consider this a future proof level set against replacement costs.”
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