Augsburg-headquartered Patrizia has paid about €100 million for a residential development project in Malmö, Sweden.
The scheme is located in the city’s residential and commercial suburb Hyllie and was bought from property fund manager Slättö.
The development, which is scheduled for completion in late 2021, will provide 427 apartments units for rent with between one and four bedrooms.
“The defensive profile of the Swedish residential sector means that we will be able to deliver secure and stable income to our investors. The market is underpinned by favourable supply-demand dynamics, due to a growing urban population and limited availability of suitable housing,” said Patrizia’s country manager and head of asset management for Sweden Johan Lagerdahl.
Patrizia now has €400 million AUM in Sweden, of which residential comprises 20%, and €1.7 billion AUM across the Nordics.
“We continue to look for opportunities to grow our exposure to the residential sector in Sweden, particularly around Stockholm, Malmö and Gothenburg,” said Patrizia’s head of transactions for the Nordics Jörg Laue.