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Heimstaden buys European residential properties from Akelius for 93 billion crowns

By Reuters

<div> <p> – Sweden-based Heimstaden has agreed to buy rival Akelius Residential Properties’ 599 properties in Germany, Denmark and Sweden for 92.5 billion Swedish crowns ($10.6 billion). </p> <p>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.</p> <p>“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. </p> <p>“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.</p> <p>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. </p> <p>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. </p> <p>Akelius had announced in June that it was considering selling its mature properties in the three countries.</p> <p>($1 = 0.1157 Swedish crowns)</p> <p/> </div>