Vonovia yesterday received competition clearance by the Swedish Competition Authority for its acquisition of 69.3% of the voting rights (61.2% of the share capital) in Swedish residential company Hembla. The acquisition will be completed shortly.
This clears the way for Vonovia to become Sweden's largest residential company. After completion of the acquisition, Vonovia will be required to launch a mandatory public offer for the remaining shares in Hembla. Completion of the acquisition and the launch of the mandatory public offer for the remaining shares in Hembla are expected to take place in November.
This is Vonovia's second step into the Swedish market after acquiring residential company Victoria Park in 2018. Through Victoria Park's and Hembla's highly complementary portfolios, Vonovia becomes the largest landlord in Sweden, owning around 38,000 residential units and gaining a compelling exposure to Sweden's three largest cities Stockholm, Gothenburg and Malmö. As a long term investor and holder of properties Vonovia is committed to the Swedish market and will focus on expansion and further investment in Hembla's properties. It is not part of its strategy to realize value through the future sale of buildings.
The investment in Hembla perfectly fits Vonovia's long-term strategy that puts the tenant in the center of all business activity. As a modern service company, Vonovia focuses on customer orientation and tenant satisfaction.
The company has built up on its scalable platform services for customers and established a craftsmen organization that enhances the quality of its flats. Offering tenants attractive and high quality living is a prerequisite for the company's successful development. Accordingly, Vonovia makes long-term investments in the maintenance, energy efficiency modernization and senior-friendly conversion of its properties.