Heimstaden buys European residential properties from Akelius for 93 bln crowns (updated)

Akelius Residential Property AB (publ)

27/09/2021 09:57

* Swedish residential property firm Heimstaden expands in
Europe
    * Deal includes 14,000 flats in Berlin
    * Akelius had flagged plans to sell 
    * 

 (Adds detail, background)
    Sept 27 (Reuters) - Sweden-based Heimstaden  HEIMpref.ST 
has agreed to buy rival Akelius Residential Properties'
 ALKELd.ST  599 properties in Germany, Denmark and Sweden for
92.5 billion Swedish crowns  ($10.6 billion).  
    Heimstaden said late on Sunday that the properties - which
contain 28,776 apartments, half of which in Berlin - have 2.8
billion crowns in annual rental income. The deal includes the
company's first investment in Hamburg.
    "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," co-chief investment officer
Christian Fladeland said. 
    "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," he said in a statement.
    The deal, which is subject to merger clearances, follows on
a string of smaller portfolio acquisitions this year by
Heimstaden across northern and central Europe.  urn:newsml:reuters.com:*:nASN001JAC
 urn:newsml:reuters.com:*:nASN001JAC  urn:newsml:reuters.com:*:nL3N2NB3Q5  urn:newsml:reuters.com:*:nL5N2NB1D4 
    Heimstaden said it would pay for Akelius' portfolio with a
mix of cash at hand, new equity and a 65.7 billion crown bridge
financing facility with a 2-year maturity. Deutsche Bank served
as financial adviser to Heimstaden.    
    Akelius had announced in June that it was considering
selling its mature properties in the three countries.
 urn:newsml:reuters.com:*:nFWN2O50MI

($1 = 0.1157 Swedish crowns)

 (Reporting by Shubham Kalia in Bengaluru; Editing by Daniel
Wallis and Louise Heavens)
 ((Shubham.Kalia@thomsonreuters.com;))