Swedish property group Akelius has carried out two residential real estate transactions in the UK for £84.45 mln (EUR 101 mln) in cash. The move is part of the company's aim to build a a major residential investment portfolio in the country.
Swedish property group Akelius has carried out two residential real estate transactions in the UK for £84.45 mln (EUR 101 mln) in cash. The move is part of the company's aim to build a a major residential investment portfolio in the country.
Akelius announced on Wednesday that it had completed one of the largest residential property transactions in recent years with the purchase of 574 apartments from UK company Terrace Hill for £75.35 mln. The tenanted properties are spread across 26 sites in Akelius' core areas of London and the South East of England with buildings in locations such as Clapham, Ealing, Kennington, Watford and Milton Keynes.
In December, Akelius purchased Pelham and Waverley Court in Horsham from Grainger for £9.1 mln. The freehold property comprises 81 tenanted units close to transport and Horsham town centre.
Property adviser CBRE acted for the Swedish company.
Akelius has now invested nearly £100 mln in acquiring and refurbishing UK residential property. Its total UK portfolio now stands at close to 700 units.
Lars Lindfors, managing director of Akelius UK, said: 'We will continue to grow our UK portfolio and hope to have at least 1,000 units by the end of the year. We are in the process of refurbishing the properties we have already acquired to Akelius standard by installing new kitchens and bathrooms, renovating the common areas and landscaping grounds for example. Our aim is to set a new standard for private rented sector accommodation in the UK.'
Akelius' first UK acquisition was in October 2011 when it purchased 16 tenanted units in Clapham from Terrace Hill for £4.25 mln. The fund currently owns a total of 35,000 residential properties in Sweden and Germany with an assessed market value of £3.1 bn.
CBRE's Investor Intention Survey, released on Wednesday at MIPIM, indicates that the residential sector has become more attractive for investment purposes in 2012.
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