Heimstaden Bostad, which is controlled by Ivar Tollefsen, Norway’s seventh richest, buys a gigantic portfolio of homes in Germany, Sweden and Denmark for 92.5 billion Swedish kroner.
The acquisition is financed with NOK 24.8 billion in new share capital and bridge financing of NOK 65.7 billion. The rest is paid from Heimstaden’s cash balance, it appears from a message on Sunday night.
The seller is the Swedish real estate company Akelius, which has built up this portfolio over a period of 27 years.
The portfolio consists of 599 real estate employees with a total of 28,776 homes in Berlin, Hamburg, Stockholm, Malmö and Copenhagen.
2.8 billion in annual rent
Housing occupancy is stated at approximately 98 percent. The annual rental income is SEK 2.8 billion, of which 99 per cent comes from homes with regulated rent.
-Scale provides improvements throughout our value chain and opens up for more efficient operations and a better customer experience, says Heimstaden Bostad manager Patrik Hall in the report.
– We are particularly pleased to grow and expand geographically in Germany, the largest and most modern housing market in Europe, and to establish a presence in Hamburg, says Investment Director Christian Fladeland in Heimstaden.
First Hamburg purchase
14,050 of the homes are located in Berlin, while 3,592 homes are located in Hamburg. The purchase will be Heimstaden Bostad’s first investment in the port city.
In addition, the German part of the portfolio comprises around 66,000 square meters of commercial space as well as 1,859 parking spaces.
The Stockholm portfolio consists of 5,934 homes, the Malmö portfolio of 4,107 homes. It also totaled 118,000 square meters of commercial space and approximately 7,050 parking spaces.
The Copenhagen part of transactions includes 1,093 homes, around 6,000 square meters of commercial space and 205 parking spaces.
The transaction is expected to be completed in early December.