Swedish real estate company Brinova Fastigheter has agreed to purchase a mainly residential property portfolio from K-Fastigheter (K-Fast Holding) for SEK 10.76 bn (€934.9 mln).
Brinova will acquire K-Fastigheter’s Region Syd portfolio, which comprises properties in Skåne, Småland, and Denmark, representing about 75% of K-Fastigheter’s total investment portfolio’s market value.
The deal will be effected via the issue of new Brinova shares, priced at SEK 32.46 (€2.81) each, making K-Fastigheter Brinova’s majority shareholder with a maximum 58.4% stake. The deal will be completed on 1 April 2025, subject to approval from shareholders at extraordinary general meetings scheduled for March 2025. Brinova will remain listed on Nasdaq Stockholm, but will be included in K-Fast Holding’s financial reports.
The sale includes approximately SEK 9.5 bn (€822 mln) in existing properties and SEK 1.3 bn (€112 mln) in ongoing projects. K-Fastigheter will finish the ongoing construction projects in Malmö, Helsingborg, and Copenhagen for Brinova.
Jacob Karlsson, CEO of K-Fastigheter, said: ‘I see a perfect geographical match with good potential for synergies. Additionally, both Brinova and K-Fastigheter have highly attractive properties in the locations where they operate. There is a clear industrial logic, and the size of the new Brinova makes us one of the more significant players in our segment.’
Per Johansson, CEO of Brinova, added: ‘It is a high-quality portfolio where 65% of the acquired properties are built after 2019. The economies of scale within the new combined portfolio are clear, and we gain a strong focus on properties that provide stable returns and secure cash flows. The concentration of the portfolio to a number of strategic cities in southern Sweden that are experiencing positive development gives a strong position.’
Brinova focuses on residential and community property management in southern Sweden, while K-Fastigheter operates in property management and contracting, primarily for residential properties in Skåne, Småland, and Denmark.
Brinova and K-Fastigheter share significant geographic overlap in southern Sweden (e.g., Helsingborg, Malmö). The acquisition of K-Fastigheter will create one of the Öresund region’s largest property companies, significantly increasing Brinova’s size in terms of shares, property value, net asset value, rental income, and profitability. This expanded portfolio will feature a diverse mix of residential, community, and commercial properties.
After the deal, K-Fastigheter will retain its independent Brinova holdings and its existing portfolios in Region Väst (558 apartments) and Region Öst (498 apartments), valued at approximately SEK 3.1 bn (€268 mln). Construction of about 1,400 more apartments is underway in these regions.
