Sweden's Heimstaden scoops big RE portfolio from Denmark’s AP Pension

For DKK 900 million, the Norwegian-owned Swedish real estate company is expanding its Danish presence. For seller AP Pension, the deal means a profit of more than DKK 100 million.

Some 275 new apartments in Copenhagen built under the ownership of AP Pension are now being sold to Swedish real estate company Heimstaden in a deal for around DKK 900 million (EUR 121 million), the Swedish company says.

The deal involves a total of 27,000 square meters of space divided into two properties – Schades Garden in Ørestad Nord, a stone's throw from Danish TV broadcasting corporation headquarters DR Byen, and Kløverbladsparken in Valby.

"It is great that we can continue to buy and offer central, attractive housing in urban areas where we are already present. These two newly-constructed properties are a good addition to the Copenhagen portfolio for Heimstaden," says Magnus Nordholm, deputy CEO of Heimstaden, in a statement.

The financing is done with the company’s own money and with mortgage loans from AP Pension, it states.

"We have a philosophy at AP Pension of developing attractive and well-located homes for the benefit of the area and residents, while securing solid returns for our customers. The two residential properties in Amager and Valby, respectively, are a good example of that, and with this deal we have managed to create a good profit for our customers. This is, in every way, really good," says Peter Olsson, CEO of AP Ejendomme, in the announcement.

Gorrissen Federspiel has been Heimstaden's consultant, while Accura has advised AP Pension.

According to the Land Registry, AP Pension bought the 6800 square meter plot in Ørestad for a price of DKK 66 million from Copenhagen habour authority By & Havn in 2014, while the nearly 6,000 square meter site in Valby at the addresses Kløverbladsgade and Carl Jacobsens Vej was sold in 2005 for DKK 90 million. In a separate press release, AP Pension discloses that the deal brings a three-digit million profit in Danish kroner.

Sadolin & Albæk brokered the deal

According to figures from Cushman & Wakefield, in 2017 Heimstaden was the most active foreign investor buying in Denmark with total acquisitions of more than DKK 7 billion.

The company is listed in Sweden, but controlled by wealthy Norwegian Ivar E. Tollefsen.

English Edit: Marie Honoré

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