Swedish property group Heimstaden has acquired 1,550 residential units in Denmark from Ares Management for DKK 2.9 bn (€393 mln).
Ares, a US-based global asset manager, sold the portfolio on behalf of funds it manages. The assets are located across the Greater Copenhagen, Aarhus, Odense, Sjaelland and Triangle regions of Denmark.
The portfolio sale includes the purchase of 26 properties expected to be completed by 29 September, with the purchase of an additional four property purchases to be completed between the fourth quarter of 2017 and the second quarter of 2019.
In the past 22 months, Ares completed the seven acquisitions that comprise the assets in this portfolio, improved the assets to institutional quality, and now executed on the disposition to Heimstaden, one of the most acquisitive residential landlords in the Nordics.
'Our execution on the residential opportunity in Denmark is reflective of our strong overall track record in residential assets across Europe, specifically in the U.K. and Germany,' said Bill Benjamin, partner of Ares Management and head of the Ares Real Estate Group. 'This portfolio sale demonstrates our longstanding real estate strategy of acquiring assets with value-add potential in or near large city centers in major European markets, making key improvements to increase occupancy, and selectively scaling the portfolio to attract institutional investors.'
Ares expects to continue to work with its local Danish partner, SF Management, to pursue further acquisition opportunities.
JLL, in partnership with Sadolin & Albaek, advised Ares in the transaction.
