Heimstaden ties up with pension funds in €330m resi JV

Swedish property firm Heimstaden has teamed up with pension funds Alecta, Ericsson and Sandvik to create a new SEK 2.9 bn (€330 mln) residential property company.

In a statement, Heimstaden said it will contribute a portfolio of 4,500 apartments to the new vehicle, with the acquisition being funded by banks SEB, Danske Bank, Nykredit, Handelsbanken and SBAB.

The package includes a total of 148 assets mainly located in southern Sweden and Uppsala.

'We see the partnership between professional managers and institutional investors as an optimal combination,' said Heimstaden's CEO Patrick Hall.

Alecta will be the largest shareholder with a 40% stake in the company. Heimstaden will retain a 30% interest while the Ericsson and Sandvik pension funds will own the remaining stake.

Heimstaden will retain the management of the assets.

'Residential real estate gives us a long-term and secure income at an attractive level of return,' commented Kent Jonsson of Alecta.

Newsec has brokered the transaction. Law firm Falkeborn provided legal counsel to Heimstaden. Alecta, Ericsson and Sandvik were represented by Kompass Advokat.