Heimstaden Buys Homes in European Cities in EU9.1 Billion Deal
(Bloomberg) -- Heimstaden Bostad AB agreed to buy hundreds of northern European properties from Swedish rival Akelius Residential Property AB in a deal valued at 92.5 billion kronor (9.1 billion euros) that underscores the attraction of the German real estate market to investors.
The company will buy 599 properties with 28,776 homes located in Berlin, Stockholm, Malmo and Copenhagen, plus its first investment in Hamburg.
“We are particularly pleased to grow and expand geographically in Germany, the largest and most mature residential market in Europe,” Christian Fladeland, co-chief investment officer at Heimstaden, said in a statement Sunday.
The deal comes amid efforts from Germany’s two biggest landlords -- Vonovia SE and Deutsche Wohnen SE -- to merge. Their combination to create a housing giant is being closely watched in Germany, as affordable housing has become a hot-button political issue and particularly in the once-cheap capital Berlin.
Heimstaden Bostad will finance the transaction using cash, 24.8 billion kronor in new equity and a 65.7 billion-krona bridge financing facility. Heimstaden AB, existing institutional shareholders and the Swedish Pensions Agency are among those who committed equity.
JPMorgan has underwritten Heimstaden AB’s bridge financing facility. The deal is expected to close in early December.
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