The acquisition has an underlying property value of SEK 1,8 billion, corresponding to SEK 13,000 per sqm.

“This is our largest acquisition ever and it is satisfying to carry it through in an effective way without a wide auction. The deal is done to an estimated initial yield of 4,6 percent and based on current earnings; increase the earnings per share before tax by 37 percent annually. Approximately a third of the portfolio is located in Malmö and the rest in Karlskrona. We have previously been present in Malmö and in Karlskrona the size means that we get an effective and significant scale distribution from start” says Victoria Park’s CEO Peter Strand.

The current portfolio is fully leased with an average rent of approximately SEK 1050 per sqm and has a turnover on par with Victoria Park’s existing portfolio. After this deal Victoria Park will have a total leasable area of approximately 900,00 sqm distributed on approximately 11,400 apartments. Through this acquisition the total property value increases by approximately SEK 10,3 billion, which corresponds to SEK 11,400 per sqm.

“It is an important and strategic deal for Victoria Park on a partially new geographic market. Through this deal we take another large step towards our goal of managing at least 1,000,000 sqm. We acquire a portfolio that we expect to be able to refine further through our value creating management model with a social dimension” says Victoria Park’s CEO Peter Strand.

This acquisition takes place in corporate form and is based on an underlying property value of SEK 1,8 billion where the purchase price for shares preliminarily amount to MSEK 616. The acquisition is financed through existing cash as well as new loans, according to the company’s policy. Access was granted on July 14th 2016, when the payment was made.

Fredersen Advokatbyrå, PWC and Ungmark Asset Management have been advisors in the transaction.