Heimstaden Bostad has agreed to acquire the entire Scandanavian and Germany portfolio of Akelius Residential Property.
Heimstaden is buying 28,776 apartments in Scandinavia and Germany for €9.1 bn making this the largest private real estate transaction in the Nordics ever and one of the largest in the world.
CBRE advised on the Germany assets and was the second adviser alongside lead agent Pangea Property Partners on the Scandinavian properties.
André Lundberg, head of corporate finance and partner at Pangea, said: ‘This is probably the finest residential portfolio ever traded in Scandinavia and Germany. Investor interest has been huge, global and extremely competitive. It has been an extremely swift process with a professional buyer and seller, I’m really impressed how they performed. It is especially pleasing to observe the high activity in the market as the Nordic countries are opening up again,’ said André Lundberg, head of corporate finance and partner at the firm.'
The record-breaking transaction comprises 28,776 apartments in total, which is all of Akelius’ real estate assets in Sweden, Denmark, and Germany. The Scandinavian portfolio comprises 5,934 apartments in Stockholm, 4,107 in Malmö, and 1,093 in Copenhagen. The German portfolio includes 14,050 apartments in Berlin and 3,592 in Hamburg.
Local staff follow the properties to the buyer. Planned closing of the transaction is subject to merger clearance in Germany and Sweden.
Heimstaden Bostad massively increases its position in Germany, Sweden and Denmark as a result.
CEO Patrik Hall said: ‘We are happy to announce this acquisition across five thriving and attractive European cities with rich cultural legacies, strong economic growth, and passionate inhabitants with engagement for their cities and broader society.’
‘Scale leads to improvements throughout our value chain, and enables more efficient operations, better customer experience, and greater impact through investments in sustainable solutions and measures aimed at combating society challenges and climate change. Over the last few years, Heimstaden Bostad has successfully integrated properties and organisations in new and existing markets, with large acquisitions in Denmark, the Netherlands, the Czech Republic, and Germany.’
For 27 years, Akelius has gradually built up the portfolio with continuous development and renovations, The portfolio has a residential occupancy of approximately 98% and more than 99% of rental income comes from regulated apartments.
CEO Ralf Spann said: ‘It took 27 years in Sweden and 15 years in Germany of hard work to create the residential portfolio. Thanks to all staff that built and managed a portfolio with unique quality, low risk and high long-term potential. You can be proud.’
Heimstaden Bostad will finance the transaction using cash at hand, new equity and a bridge financing facility with a 2-year maturity.
Equity is committed from Heimstaden AB and existing institutional shareholders in Heimstaden Bostad; KPA Pension (part of Folksam Group), Alecta, and the Swedish Pensions Agency.
JP Morgan has underwritten the bridge financing facility.
