Allianz and Heimstaden Bostad Form Joint Venture

Allianz Real Estate, on behalf of Allianz companies, invests SEK 7.9 billion in Heimstaden Bostad’s portfolio in Sweden with properties recently bought from Akelius, forming a joint venture (JV) on the SEK 30.4 billion portfolio centrally located in Malmö and Stockholm.

Commenting on the acquisition:

Annette Kröger, CEO North & Central Europe for Allianz Real Estate:
“We are very pleased to enter into this joint venture covering such a well-diversified, sizeable portfolio. 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.”

Nicole Pötsch, Head of Acquisitions & Sales North & Central Europe at Allianz Real Estate:
“We are excited to launch this partnership with Heimstaden Bostad AB, a leading, best-in-class residential operator, and we look forward to this transaction being the start of a strong venture. We very much appreciate Heimstaden’s entrepreneurial approach and tenant-centricity combined with a joint view on ambitious ESG targets that we would like to realize for this portfolio.”

CEO at Heimstaden, Patrik Hall:
“We are pleased to partner with Allianz, which is a global and reputable long-term investor with significant experience within the real estate sector. Their substantial investment and long-term commitment show trust and confidence in our platform and operational expertise, and we look forward to building a strong and lasting partnership.”

Deputy CEO and Head of ECM at Heimstaden, Magnus Nordholm: 
“Allianz shares our evergreen perspective and customer-centric mindset, and this partnership is a testament to our strategy of responsible growth with a scalable operational platform. Allianz is the fourth investor to partner with Heimstaden Bostad in 2021, further strengthening our capital structure and our position as a leading European residential real estate company.” 

Properties and sustainability
The 99 properties are part of the portfolio recently acquired by Heimstaden Bostad from Akelius with 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 residential properties have regulated rent with an economic occupancy rate of ~99% and provide stable cash flows and attractive yields on a risk adjusted basis.

The joint venture adopts Heimstaden Bostad’s sustainability programme and has committed SEK 1.2 billion towards energy-optimising measures to reduce greenhouse gas emissions in line with the Paris Agreement.

Structure and financing
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.

The shareholders will hold a combination of preference and common shares with different rights to dividends and voting. Heimstaden Bostad will hold a higher ratio of common shares, and the joint venture will be fully consolidated into Heimstaden Bostad.

Joint venture ownership structure

Heimstaden Bostad was advised by PwC and DLA Piper. Allianz Real Estate was also advised by PwC, as well as by CMS, Vinge, and Deloitte.

Newsroomnews Investornews

Contact:
Christian V. Dreyer, CCO
+47 907 24 999
christian.dreyer@heimstaden.com
ir@heimstaden.com

About Heimstaden
Heimstaden is a leading European residential real estate company that buys, develops, and manages homes. Through our values Care, Dare and Share, we create value for owners and Friendly Homes for customers. We own about 150,000 homes with a property value of SEK 290 billion. Read more at www.heimstaden.com.