The logo of the insurer Allianz SE can be found on the company building in Puteaux in the financial and business district of La Defense near Paris, outside Paris, France, May 14, 2018. REUTERS / Charles Platiau / File Photo

December 22 (Reuters) – Allianz Real Estate said on Wednesday that they had invested SEK 7.9 billion (USD 870.88 million) in Heimstaden Bostad’s (HEIMpref.ST) portfolio of properties in Sweden that they recently acquired from their rival Akelius Residential Properties (AKELd.ST)).

The agreement will form a joint venture on the portfolio of SEK 30.4 billion, which includes 3,377 homes in Malmö and 5,932 homes in Stockholm, the asset manager says in a statement.

Allianz Real Estate, on behalf of the insurance company Allianz (ALVG.DE), said that the joint venture will be financed with equity, as well as a loan facility from Heimstaden.

In September, Heimstaden agreed to buy Akelius’ 599 properties in Germany, Denmark and Sweden for SEK 92.5 billion (USD 10.6 billion), following a series of smaller portfolio acquisitions this year in northern and central Europe.

($ 1 = 9.0713 Swedish kronor)

Reporting by Vishal Vivek in Bengaluru; Editing Ramakrishnan M.

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