“It is gratifying to carry out this transaction together with Trianon. We already have a significant share of our total portfolio in Malmö, which provides us with efficient and scalable property management,” says Victoria Park’s CEO Peter Strand.
 
The portfolio, which has been partly renovated in recent years, is fully leased. The acquisition will take place in company form and is based on an underlying property value of MSEK 795 (EUR 80M), where the preliminary purchase consideration for shares totals approximately MSEK 551 (EUR 55M), of which Victoria Park will pay about MSEK 231 (EUR 23M) and Trianon aboutM SEK 320 (EUR 32M). Both Victoria Park and Trianon will finance the acquisition with existing cash and by raising new loans, in accordance with company policies. Possession is scheduled for 1 March 2018 when the purchase consideration is to be paid.
 
The acquired company will, after possession, be divided and Victoria Park and Trianon will consolidate their respective parts. Victoria Park will be a long-term owner of almost 300 flats and Trianon of just over 400 flats. The property value is broken down into MSEK 462 (EUR 47M) for Trianon’s share, corresponding to approximately SEK 16,900 (EUR 1,700) per square metre, with an average residential rent of about SEK 1,350 (EUR 136) per square metre. Victoria Park’s share has a property value of MSEK 333 (EUR 34M), corresponding to approximately SEK 16,400 (EUR 1,650) per square metre, with an average residential rent of about SEK 1,200 (EUR 121) per square metre. The division is expected to be complete by 31 March 2018.
 
“The properties are located close to our existing property portfolio at Lindängen in Malmö, and we view this as a strategic opportunity to increase our presence in the area and will offer further efficiencies in our property management. We are delighted to conduct this acquisition together with Victoria Park. It will strengthen the continued development process in the area,” says Trianon’s CEO Olof Andersson.