Heimstaden Bostad buys European properties in 9.1 bln euro deal

Reuters
·1 min read

Sept 26 (Reuters) - Swedish residential real-estate company Heimstaden Bostad said it agreed to buy a portfolio of properties located in major European cities such as Berlin, in a deal valued at about 9.1 billion euros ($10.66 billion).

Heimstaden will buy 28,776 homes across Sweden, Germany, and Denmark from rival Akelius Residential, it said in a statement on Sunday. 17,642 of these homes would be in Germany, and includes the company's first investment in the city of Hamburg.

"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,” Christian Fladeland, co-chief investment officer of Heimstaden, said.

Heimstaden said the deal will be financed using cash, 24.8 billion crowns ($2.87 billion) in new equity, and a 65.7 billion crown bridge financing facility with a 2-year maturity.

Deutsche Bank served as the financial adviser to Heimstaden.

($1 = 8.6462 Swedish crowns) ($1 = 0.8537 euros) (Reporting by Shubham Kalia in Bengaluru; Editing by Daniel Wallis)