Swedish residential property investor Heimstaden has repositioned its Nordics footprint with a raft of transactions worth SEK 29.8 bn (€3 bn).
Heimstaden Bostad, a residential company which Heimstaden co-owns with Swedish fund Alecta, has completed several deals in Denmark, Sweden and Finland to boost its portfolio. These include Heimstaden Bostad acquiring Heimstaden's existing property portfolio in Copenhagen, for around SEK 5.4 bn (€550 mln).
In addition, Heimstaden Bostad has acquired Heimstaden's ongoing construction projects in Örestaden Copenhagen, worth around SEK 1.2 bn (€120 mln), plus Heimstaden's Swedish residential portfolio with properties in Malmö, Uppsala, Norrköping, Ystad, Falköping and Värnamo worth a total of SEK 3.5 bn (€360 mln).
'Cooperation between the owners of Heimstaden Bostad (Alecta, Ericsson and Sandvik pension funds plus Heimstaden) has worked in an excellent way. The owners are now taking the next step in the enhanced cooperation to create a unique Nordic residential portfolio in growth areas with housing shortages,' commented Patrik Hall, CEO of Heimstaden.
Heimstaden Bostad has also bought Alecta's newly built residential properties in the Stockholm area, comprising 1,163 apartments. The properties are located in Vällingby, Haninge and Huddinge and are worth over SEK 2.2 bn (€220 mln).
Entering Finland for the first time, Heimstaden Bostad has purchased about 50% of Fredensborg Eiendomsselskaps' residential properties, primarily located in Oslo, worth over SEK 8.4 bn (€860 mln).
Heimstaden said that the total acquisition programme had taken place at an average initial yield of around 3.8% and that the preliminary purchase price for the shares amounts to approximately SEK 5.8 bn (€590 mln). The deals are being financed through bank loans and new share issues.
'We are very pleased with how Heimstaden Bostad has evolved, and how our clients' assets are managed there. Property in Copenhagen, Oslo and Stockholm gives Heimstaden Bostad a unique position in the market,' added Fredrik Palm, head of real estate at Alecta.
The deals follow Heimstaden Bostad acquiring 1,088 apartments in Linköping, southern Sweden from municipal company Stångåstaden just days before for around €100 mln.
Closing is expected to take place at the start of the 4th quarter 2017, subject to bank financing and the competition authorities in Denmark and Norway.
