Allianz Real Estate and Heimstaden Bostad AB have established a new joint venture for the SEK30.4 billion (app. €3 billion) Swedish residential portfolio.
Allianz Real Estate has invested SEK7.9 billion in Heimstaden Bostad’s portfolio in Sweden.
The 99 properties are part of the portfolio recently acquired by Heimstaden Bostad from Akelius with 3,377 homes in Malmö and 5,932 in Stockholm, making the JV one of the largest private residential owners in the Swedish capital.
”All residential properties have regulated rent with an economic occupancy rate of ~99% and provide stable cash flows and attractive yields on a risk adjusted basis,” said Heimstaden in a statement.
The transaction will be completed in January 2022. The JV will be funded with equity, including Allianz’ SEK 7.9 billion investment, as well as a debt facility from Heimstaden Bostad.
Annette Kröger, CEO North & Central Europe for Allianz Real Estate, said: “We are very pleased to enter into this joint venture covering such a well-diversified, sizeable portfolio. Our renewed interest in the residential sector is a deliberate adjustment to our investment strategy; the sector’s stability makes the sector highly attractive to long-term investors. The fundamentals in the Nordics are strong, the residential market is well-established and we have actively targeted growth in this region.”
CEO at Heimstaden, Patrik Hall said: “We are pleased to partner with Allianz, which is a global and reputable long-term investor with significant experience within the real estate sector. Their substantial investment and long-term commitment show trust and confidence in our platform and operational expertise, and we look forward to building a strong and lasting partnership.”
Deputy CEO and Head of ECM at Heimstaden, Magnus Nordholm said: “Allianz shares our evergreen perspective and customer-centric mindset, and this partnership is a testament to our strategy of responsible growth with a scalable operational platform. Allianz is the fourth investor to partner with Heimstaden Bostad in 2021, further strengthening our capital structure and our position as a leading European residential real estate company.”
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