Swedish property company Heimstaden has continued its drive into the residential sector in the Danish capital Copenhagen with the acquisition of a development project for DKK 880 mln (€118 mln).
The Ö-huset project comprises 300 housing units and a grocery store over 27,000 m2 in the Örestad neighbourhood of Copenhagen. The development will be delivered in stages until late 2018.
The vendor is Swedish construction and development company Skanska.
The transaction of the holding company behind the development was carried out by Heimstaden's Danish subsidiary. 'We are excited to be involved in and actively influencing development in the Danish capital and will continue to grow there through the acquisition of existing properties as well as good development projects,' said Heimstaden's deputy CEO Magnus Nordholm.
Skanska announced in May 2016 that it was investing about €75 mln in the residential project in Ørestad City, a new living and working area taking shape in the Danish capital.
Heimstaden is one of several Swedish property investment companies active in Copenhagen's residential market in recent years. In December Heimstaden acquired 109 units across five residential properties in the city of €61 mln.
Other transactions in 2016 included purchasing 105 units from Stockholm-based fund manager Nordic Real Estate Partners (NREP); 150 condominiums from NREP and Denmark's Northinvest for €44 mln and 144 units from Swedish private equity firm Niam for €57 mln. Heimstaden agreed to acquire 436 apartments across nine buildings in Copenhagen from Niam for €188 mln in January 2016.
