The project comprises the development of a new neighborhood in the city, adjacent to the sea, and a few minutes’ walk to the central parts of Sundsvall. A turnkey contract has already been signed with Serneke and construction is expected to start in the autumn of 2020 with the first phase is ready for tenants in early 2023. The acquisition the fifth completed as part of a framework agreement with Magnolia, under which Heimstaden Bostad will acquire 14 housing projects comprising approximately 5,300 apartments and valued at approximately SEK 9.6 billion.

“These will be the first apartments we own in Sundsvall which we are very glad about. Additionally, the good cooperation with Magnolia Bostad and Serneke will result in a top-quality construction that gives us the conditions to finance the project through the EIB, (the European Investment Bank)” says Patrik Hall, CEO of Heimstaden.

“We look forward to continuing our good cooperation with Magnolia and Serneke. We also look forward to being able to offer sustainable and friendly homes that have been developed in an attractive location in Sundsvall's inner city with both human and environmental focus,” says Sara Macdonald, Head of Asset Management at Heimstaden.

“Normally we begin by first establishing a management portfolio of existing properties and then supplementing this with the development of new projects. In Sundsvall, we are doing the opposite. Therefore, we hope that opportunities will emerge to acquire existing apartment buildings in the city so that we can develop Sundsvall in line with our evergreen perspective and our Friendly Homes,” says Tom Rasmussen, Senior Investment Manager at Heimstaden.

“It’s really enjoyable that we are signing another sale of residential units within our framework agreement with Heimstaden. Norra Kajen is one of our larger projects and means that we are developing a whole new residential area,” says Björn Bergman, Eastern Regional Director at Magnolia Bostad.

Wistrand Advokatbyrå has acted as legal advisor to Magnolia Bostad. Mannheimer Swartling has acted as legal advisor to Heimstaden.