Nordic residential property company Heimstaden Bostad has increased the size of its Danish portfolio with the SEK 3.5 billion (€343 million) acquisition of 1,473 homes in various locations.
The portfolio consists of 34 properties, of which 18 are standing assets with 680 homes, including one commercial property. There are 16 properties under construction which have been bought by means of a forward purchase agreement with turnkey delivery within 24 months.
The portfolio, including projects under construction, has an estimated gross rental income (GRI) p.a. of SEK 186 million and net operating income (NOI) p.a. of SEK 148 million on a fully let basis. 15% of residential income is from regulated units.
The transaction, which has been structured as multiple share deals, will close on 13 August.
Heimstaden Bostad said in a statement that the properties complement the company’s existing geographical footprint – the new acquisitions are located mainly in Jutland with two properties located on Funen. The portfolio, which mainly consists of terraced and semi-detached houses, is located in or near medium-sized Danish cities, such as Vejle, Herning and Holstebro.
“This acquisition is a good fit with our strategy to expand our portfolio in and around growth cities across Denmark, where we also contribute to local value creation,” said Heimstaden co-chief investment officer Christian Fladeland.
Heimstaden Bostad was advised by Gorrissen Federspiel and CBRE.