European residential real estate company Heimstaden Bostad has raised SEK 3,337 mln (€300 mln) in new equity from UK-based Greater Manchester pension fund and existing shareholders.
The proceeds will partly finance the announced SEK 10,107 mln bond buyback and will strengthen the company’s balance sheet.
Councillor Gerald Cooney, chairman of Greater Manchester pension fund, said: 'We are excited to partner with Heimstaden Bostad, a best-in-class residential real estate owner-operator with a strong track record.
'Their philosophy of creating long-term value by focusing on evergreen and sustainable investments aligns perfectly with our own strategic objectives and pledge to reach net-zero carbon emissions across our investments by 2050.
'With a clearly defined focus on ESG improvement, tenant satisfaction, and affordability, Heimstaden Bostad is creating a positive societal impact given the lack of affordable housing in the UK and across Europe.'
Steen Lønberg Jørgensen, head of capital raising and client relations at Heimstaden said: 'The new equity shows our shareholders’ strong commitment to the company, a continuous support that has enabled recent years’ growth towards becoming a leading and commercially successful residential real estate company.
'We are especially pleased to welcome Greater Manchester Pension Fund, one of the UK’s leading institutional investors. We share a commitment to sustainable and responsible investments on behalf of all stakeholders and are looking forward to developing our relationship even further.'
Greater Manchester pension fund is one of the largest local government pension schemes in the UK, managing £28 bn (€32 bn) for Manchester’s ten boroughs and providing retirement benefits to over 375,000 members.
