Heimstaden Makes Major Acquisition in Denmark
Denmark Heimstaden has acquired a Danish portfolio with residential properties in five regions. The transaction price is EUR 343M.
The entire portfolio, including construction projects, consists of 1,546 residential units spread over approximately 151,000 square meters. The construction projects are expected to be ready for occupancy between Q3 2017 and Q2 2019.
Estimated net operating income (NOI) including construction projects amounts to MDKK 134 (EUR 18M) and the agreed purchase price amounts to DKK 2.925 billion (EUR 393M). The acquisition will be financed with cash and by mortgage credit financing.
"Heimstaden has quickly managed to grow significantly in Greater Copenhagen and interest in finding a geographically diverse portfolio has been included in the strategic objective for some time. The portfolio of Ares Management offers meets our requirements well and gives us, among other things a very interesting exposure to two exciting cities, Aarhus and Odense. The entire portfolio is of high quality and modern with an average age of approximately six years. We are proud to have the opportunity for continued growth also outside Copenhagen and look forward to building on the brand Heimstaden in Denmark," says Magnus Nordholm, deputy CEO of Heimstaden.
Gorrissen Federspiel has acted as legal advisor to Heimstaden in the transaction.