Swedish residential development fund Slättö has struck a deal with listed house builder Magnolia Bostad to acquire up to SEK 14 bn (€1.45 bn) worth of projects in the Stockholm, Uppsala and Öresund regions.
The portfolio includes 13 schemes covering 450,000 m2, corresponding to around 7,000 apartments. The cooperation is based on the construction of mostly rental units, with approximately 25% of the portfolio to be built as condominums.
Under the deal, Slättö has pledged to acquire a minimum SEK 5 bn (€510 mln) worth of projects.
'Slättö intends to own and manage the portfolio, which will be developed in accordance with Slättö's sustainability programmes and ambitious technological standards, which means a Silver green building requirement,' said Slättö CEO Johan Karlsson. 'The framework agreement with Magnolia Housing fits well into our strategy for continued development and growth.'
Pangea Property Partners, the Nordic-based corporate finance and transaction advisory firm, acted as financial advisor, while Wistrand acted as legal advisor to Slättö. Wigge & Partners acted as legal advisor to Magnolia.
Just over half of the projects are already in Magnolia's existing portfolio, while building rights have not yet been obtained for the remainder of the schemes. Magnolia has agreed to build all the projects as turnkey apartment blocks with mainly residential units. The framework agreement is valid until March 31 2020, with an extension option available subject to Slättö obtaining the necessary financing.
'The agreement promotes our continued expansion and reinforces our position as a leading community developer. We already have a well-functioning cooperation with Slättö and look forward to a deeper relationship,' commented Fredrik Lidjan, managing director of Magnolia Bostad.
