With the acquisition of 28,776 homes in Germany, Sweden, and Denmark, Heimstaden expands in markets with existing local property and facility operations and strengthens its position as a leading residential real estate company in Europe.
Heimstaden subsidiary, Heimstaden Bostad, buys 599 properties with 28,776 homes centrally located in Berlin (14,050), Hamburg (3,592), Stockholm (5,934), Malmö (4,107), and Copenhagen (1,093). The total transaction value is SEK 92.5 billion (EUR 9.1 billion). Commenting on the acquisition, CEO Patrik Hall said:
“We are happy to announce this acquisition across five thriving and attractive European cities with rich cultural legacies, strong economic growth, and passionate inhabitants with engagement for their cities and broader society.»
Heimstaden is a well-established property owner in Berlin, Stockholm, Malmö, and Copenhagen, but is entering the Hamburg market for the first time. This acquisition is bringing positive synergies and operational scale effects unique to Heimstaden, to the benefit of the organisation and its customers.
“Scale leads to improvements throughout our value chain, enabling more efficient operations, better customer experience, and greater impact through investments in sustainable solutions and measures aimed at combating society challenges and climate change. Over the last few years, Heimstaden Bostad has successfully integrated properties and organisations in new and existing markets, with large acquisitions in Denmark, the Netherlands, the Czech Republic, and Germany.”
For 27 years, Akelius has gradually built up the German, Swedish, and Danish portfolios with continuous development and quality renovations, which positively complements Heimstaden Bostad’s long-term, value-focused perspective.
“As an evergreen and value-driven company, our customers and our Friendly Homes are at the heart of our growth strategy. Together with new colleagues, customers, and local communities, we will contribute to Friendly Homes and neighbourhoods in Hamburg, Berlin, Stockholm, Malmö, and Copenhagen,” said Hall.
About the Portfolio
The portfolio comprises 28,776 homes across Sweden, Germany, and Denmark, all Heimstaden markets with existing local property and facility operations.
“We are growing our presence in markets where we have strong knowledge and experience, markets that share key attributes, such as supply/demand imbalance, favourable demographical trends, and growing economies. We are particularly pleased to grow and expand geographically in Germany, the largest and most mature residential market in Europe, and establishing a presence in Hamburg,” said Christian Fladeland, Co-Chief Investment Officer at Heimstaden.
Germany
The German properties consist of 17,642 fully regulated homes, appr. 208,000 sqm of commercial space, and 1,859 parking spaces. In 2020 Heimstaden established in-house property and facility management operations in Berlin, with capacity to manage a large-scale property portfolio. This is Heimstaden Bostad’s first investment in Hamburg, a city with favourable demographics, a positive economic outlook, and a strong model for cooperation between politics, society, and private housing companies.
Sweden
The Swedish properties consist of 10,041 fully regulated homes, appr. 118,000 sqm of commercial space, and appr. 7,050 parking spaces. Sweden is Heimstaden’s home market, and Heimstaden’s operational experience enables a successful integration of new colleagues and properties in Stockholm and Malmö.
Denmark
The Danish properties consist of 1,093 homes, of which 90% are regulated, appr. 6,000 sqm of commercial space, and 205 parking spaces. The location allows for efficient integration into Heimstaden’s existing operational setup.