The acquisition follows Heimstaden Bostad’s recently announced expansion of its core markets to also include the main part of Europe, where selected Central and Eastern Europe markets are a clear target of ours with their favorable macroeconomic fundamentals and residential trends. Residomo represents a strong platform for future expansion in the region.
The agreed purchase price on asset level amounts to approx. EUR 1.3 billion and will be financed through a mix of debt and equity. Leverage will be kept at levels to support our current rating and our path to higher rating. The transaction is subject to customary anti-trust clearance and is expected to close in Q1 2020.
The acquisition includes a full-scale operational platform, including property and asset management as well as facility management teams of close to 500 employees in total. Large renovation and upgrade programs have been carried out over the past 10 years and Heimstaden Bostad will continue to develop and upgrade the portfolio and its operations in line with its Friendly Homes concept.
“The Czech residential market has proven strong and stable, and we look forward to develop both the portfolio and the organization as well as the relationship with our customers in the years to come. RESIDOMO fits well into our desire to own the full value chain and to build a world class operational platform to serve our customers and hence our owners,” says Christian Fladeland, CIO of Heimstaden.
“We are highly focused on owning the full value chain in the markets where we operate, and with the Residomo team we obtain a well-performing operational platform right away. We are confident that the team will embrace our values and allow for efficient implementation of Heimstaden’s ‘best practice’,” says Patrik Hall, CEO of Heimstaden.
Heimstaden Bostad was advised by Clifford Chance (legal), EY (financial and tax), Sentient (technical) and J.P. Morgan (financial) on the transaction. The seller was funds advised by Blackstone Tactical Opportunities and Round Hill Capital, a leading global real estate investment, development and asset management firm.