Allianz buys into Heimstaden Swedish resi portfolio in new JV

Annette Kröger.

Allianz Real Estate has formed a joint venture with Heimstaden Bostad and is investing about SEK 7.9 billion (c €767 million) in Heimstaden’s SEK 30.4 billion portfolio of Swedish properties recently acquired from Akelius.

The portfolio comprises 99 assets which provide 3,377 homes in Malmö and 5,932 in Stockholm, making the JV one of the largest private residential owners in the Swedish capital. All of the residential properties have regulated rents and occupancy is 99%.

Annette Kröger, CEO North & Central Europe for Allianz Real Estate said, “Our renewed interest in the residential sector is a deliberate adjustment to our investment strategy; the sector’s stability makes the sector highly attractive to long-term investors. The fundamentals in the Nordics are strong, the residential market is well-established, and we have actively targeted growth in this region.”

The transaction will be completed in January 2022. The JV will be funded with equity, including Allianz’ SEK 7.9 billion investment, as well as a debt facility from Heimstaden Bostad.