Stockholm-headquartered residential giant Heimstaden Bostad has strengthened its management team as it explores options for recapitalising the firm.
Christian Fladeland, Heimstaden’s chief investment officer, will also serve as deputy CEO of the firm, effective immediately.
Fladeland recently told Reuters that the firm's board was examining options including 'the evaluation of capital injections and strategic privatisations of the portfolio' to shore up its balance sheet.
Like other developers, the high interest rate environment, steep construction costs and labour shortages have narrowed the firm's margins. Paired with significant leverage and falling house prices, Heimstaden is in need of cash, according to shareholders.
One of the firm's largest owners, Swedish pension fund provider Alecta, said it was in talks to inject further funds into the business. 'We are prepared to participate constructively and contribute to a refinancing, but of course it is entirely dependent on the conditions,' Alecta CEO Peder Hasslev said.
Fladeland, who joined the firm in January 2019, has risen rapidly to prominence at Heimstaden. In addition to overseeing the company's investment teams, he also leads the corporate finance team.
Prior to Heimstaden, Fladeland held partner positions at Colliers International and Sadolin & Albæk.
