Victoria Park buys Swedish residential portfolio for €180m

Stockholm-listed property firm Victoria Park has acquired a residential portfolio in the Swedish city of Eskilstuna for SEK 1.7 bn (€180 mln).

Victoria Park said that it has entered into an agreement with vendor, the family owned business Fogelvik Holding, to acquire 3,100 apartments with a lettable area of 244,000 m2. Eskilstuna is located about 112 kilometres west of Stockholm.

The portfolio is fully leased, generating an average annual rent of SEK 880 per m2. Closing is expected for December 2014.

Following the transaction, Victoria Park owns a portfolio with a combined lettable area of 613,000 m2 across 7,600 apartments. The deal lifts the portfolio value from SEK 3 bn to around SEK 4.7 bn, reflecting a net initial yield of 5.5%.

The acquisition will be financed partly through a private share placement as well as with new loans and existing cash reserves. 'Through this transaction, we take a major step toward our goal to manage one million m2,' said Victoria Park's CEO Peter Strand.

JLL Tenzing acted as financial advisor and Fredersen was the legal adviser to Victoria Park in the transaction.