Heimstaden’s subsidiary, Heimstaden Bostad has announced the acquisition of 1,732 homes across 65 buildings in Germany for SEK 1.9 bn (€190 mln), further expanding its German portfolio to six new cities in the northeastern part of the country.
‘We take a favourable view of the German residential market and are pleased to announce this acquisition of another attractive portfolio. Heimstaden is a long-term residential investor, and by diversifying our geographical footprint within Germany we solidify our platform for future growth,’ said Stanislav Kubacek, senior managing director of Heimstaden’s Investment Team for CEE and Germany.
The portfolio consists of 107,469 m2 of residential accommodation and 7,574 m2 of commercial space, spread across the cities of Halle (30%), Magdeburg (25%), Berlin (15%), Dresden (14%), Rostock (6%), Erfurt (5%) and Leipzig (3%). The portfolio has an estimated gross rental income (GRI) of SEK 84 mln p.a. and net operating income (NOI) of SEK 59 mln p.a., with a current residential occupancy of 89%.
‘We entered Germany with an evergreen perspective and this acquisition is a unique opportunity to strengthen our presence and provide quality homes throughout six new German cities. Heimstaden continues to follow a strategy for sustainable growth in Germany and we are looking forward to deliver excellent service for our new customers in line with our Friendly Homes concept,’ said Caroline Oelmann, country manager at Heimstaden Germany.
Heimstaden was advised by Mittelstein Rechtsanwälte, REELAB, and Warth & Klein Grant Thornton.
