European residential real estate company Heimstaden Bostad AB raises SEK 3,337 million (€299 million) in new equity from UK-based Greater Manchester Pension Fund and existing shareholders.
The proceeds will partly finance the announced SEK 10,107 million (€907 million) bond buy back and will strengthen the company’s balance sheet, the company said.
Councilor Gerald Cooney, Chairman of Greater Manchester Pension Fund, comments: “We are excited to partner with Heimstaden Bostad, a best-in-class residential real estate owner-operator with a strong track record. Their philosophy of creating long-term value by focusing on evergreen and sustainable investments aligns perfectly with our own strategic objectives and pledge to reach net-zero carbon emissions across our investments by 2050. With a clearly defined focus on ESG improvement, tenant satisfaction, and affordability, Heimstaden Bostad is creating a positive societal impact given the lack of affordable housing in the UK and across Europe.”
Steen Lønberg Jørgensen, Head of Capital Raising and Client Relations in Heimstaden comments: “The new equity shows our shareholders’ strong commitment to the company, a continuous support that has enabled recent years’ growth towards becoming a leading and commercially successful residential real estate company. We are especially pleased to welcome Greater Manchester Pension Fund, one of the UK’s leading institutional investors. We share a commitment to sustainable and responsible investments on behalf of all stakeholders and are looking forward to developing our relationship even further.”
