Victoria Park buys Swedish resi assets for €112m

Victoria Park has agreed the purchase of 1,337 residential units in the Swedish cities of Kristianstad and Stockholm from Fastighets Tornet for SEK 1 bn (€112 mln), or an initial yield of 5.5%.

The deal, which lifts Victoria Park's portfolio value to SEK 2.8 bn, is part of the company's strategy to become a significant player in the Swedish housing market.

The properties have a lettable area of 105,000 m2 and generate rents of SEK 114 mln. The 780 units in Kristianstad constitute 53% of the rental income with the Stockholm assets making up for the remaining 47%.

Following the acquisition, Victoria Park owns 4,500 housing units covering 366,000 m2. The purchase is being financed with a new loan of SEK 800 mln and a rights issue worth SEK 200 mln. 'This acquisition is part of our goal to reach one million m2 of rentable space,' said Victoria Park CEO Peter Strand.

Catella Corporate Finance is acting as financial advisor, Swedbank Corporate Finance is advising on the rights issue while Fredersen is legal advisor.