Victoria Park, the Stockholm-listed property company, has revealed it is to take part in the joint acquisition of 1,900 apartments in Sweden, weeks after acquiring a similar amount for its own portfolio in the company's largest transaction ever.
In the latest transaction Victoria Park has teamed up with Nordhalla - a vehicle backed with Swedish pension capital - to acquire the 1,900 apartments in the southern Swedish city of Vaxjo for SEK 1.5 bn (€160 mln).
The buyers have signed a letter of intent with the vendor, Vaxjo Housing, and a definite agreement is expected in September.
Victoria Park will take 900 units, with a total floor space of 70,000 m2, into its existing holdings of 11,400 homes. The 900,000 m2 portfolio has a market value of €1 bn. Nordhalla will acquire the rest of the Vaxjo assets.
Nordhalla has €650 mln of Swedish residential under management. The vehicle was established by Heimstaden, the largest privately owned real estate company in Sweden, with backing from Swedish pension fund Alecta, Sandvik Pension and Ericsson Pension Fund.
In July, Victoria Park announced the acquisition of a residential portfolio consisting of 1,938 apartments for a total investment of €190 mln, reflecting an initial yield of 4.6%.
These assets, which are mostly located in the Swedish cities of Malmö and Karlskrona, provide a lettable area of 138,000 m2, with the deal reflecting a value of SEK 13,000 per m2. The portfolio is fully let.
'This is our largest deal ever,' commented Victoria Park's CEO Peter Strand at the time. 'This is an important and strategic operation for Victoria Park in a partly new geographic market. Through this transaction we take another major step towards our goal of managing at least 1 million m2.'
