Nordic private equity real estate investor Slättö has invested SEK3.1bn (€270m) on behalf of a new value-add fund to buy a 40% stake in a student housing portfolio in Sweden.
Slättö said the portfolio, comprising 3,000 student housing units located across Sweden’s university cities, have been acquired via a joint venture with the Swedish real estate company Knaust & Andersson Fastigheter (K2A).
K2A will manage the joint venture’s portfolio, which includes 75% newly constructed properties.
Jonas Andersson, deputy managing partner at Slättö, said the transaction is the first investment made by Slättö’s new fund in the value-add strategy, through which Slättö “continues to offer strong risk-adjusted returns to our investors”.
Andersson added: “This acquisition further strengthens our position as one of the few players capable of seizing opportunities in an uncertain market and realising complex deals.
“Our conviction is that 2024 will be an exceptionally strong fund vintage, given the price correction undergone in the Nordic market, and strong deal flow we’re experiencing from sellers looking to transact off-market.”
Christian Bratt, partner and head of residential at Slättö, said: “The current combination of rental growth potential and entry pricing makes this an attractive time to invest in residential. We see great value in acquiring a purpose-built, high-quality student accommodation portfolio rarely available on the Swedish market.
“Students enrolled in education programs eligible for student financial aid also have a predictable financial situation, making this a secure investment with great potential. We look very much forward to cooperating with K2A to effectively manage and further improve the portfolio”.
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