Heimstaden Expands Portfolio in Poland
Heimstaden subsidiary, Heimstaden Bostad AB, buys a newbuild portfolio with 2,496 homes in Poland for SEK 3.1 billion from leading Polish residential development company, Budimex.
The portfolio is located in five of the largest cities in Poland: Warsaw, Krakow, Wroclaw, Poznan and Gdansk, economic hubs in their regions, encompassing Poland’s most populated and prosperous areas.
“This expansion will strengthen our presence and make us a leading provider of rental housing in Poland. It also enables the establishment of an efficient management platform that will provide Friendly Homes to our Polish customers for years to come,” said Stanislav Kubáček, Senior Managing Director of Heimstaden’s Investment Team for CEE and Germany.
The portfolio consists of 13 projects to develop 2,496 apartments (131,806 sqm), 5,202 sqm of retail space, and accompanying parking spaces. Estimated gross rental income p.a. is SEK 246 million with net operating income of SEK 179 million, and the entire portfolio will be let at market rent.
The transaction is structured as forward funding commitments with Budimex as the developer. Heimstaden will make partial payments throughout the development phase based on construction milestones and does not take on development risk. Construction will begin in 2021 and the projects will be completed between Q1 2023 and Q1 2025.
Budimex is one of the largest and most established residential developers in Poland, with more than 50 years of experience and a land bank exceeding 8,000 apartments.
Heimstaden Bostad was advised by Dentons, Deloitte, Arcadis, Leach & McGuire, and JLL.
KEY FACTS & FIGURES
- Acquisition price, incl. fit-out: SEK 3.1 billion (PLN 1.4 billion)
- 2,496 homes
- Residential area: 131,806 sqm.
- Total area: 137,008 sqm
- 5,202 sqm retail space
- 2,870 parking spaces
- Est. GRI p.a.: SEK 246 million (PLN 110 million)
- Est. NOI p.a.: SEK 179 million (PLN 80.2 million)
Christian V. Dreyer, CCO
+47 907 24 999
Magnus Granerød, IR Manager
+47 922 38 407
Heimstaden is a leading residential real estate company in Europe, which 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 114,000 homes with a property value of SEK 180 billion. Our head office is in Malmö. Read more at www.heimstaden.com