The residential portfolio mainly consists of terraced houses located across Denmark in large and mid-sized cities, such as Odense, Vejle, Horsens, Silkeborg and Randers. The transaction also includes a portfolio of 35 commercial properties, all located in the vicinity of the residential portfolio. The agreed disposition price for the transaction is ~€1.63 billion (DKK 12.1 billion), which, according to Real Capital Analytics, makes this the largest real estate transaction ever in Denmark.
Early on, Niam identified the Danish housing market as attractive, partly because of the steady population growth but also the lack of modern and energy-efficient housing which increased the occupier demand, thus providing a stable investment case. In 2017, Niam acquired HD Ejendomme in Odense which has since served as a platform for asset management, transactions, and project development.
Henrik Gerdin, Niam Fund Manager, says:
“We are very pleased to have successfully implemented our strategy to build a large and attractive residential asset management portfolio, while improving HD Ejendomme and its operational key figures. Niam has solid knowledge and experience of buying and managing residential portfolios in the Nordic region and will continue to be active in transactions, asset management and project development.”
Across all Niam's funds, a total of 8,883 residential units have been acquired in the Nordic region and Niam’s funds have completed several residential development projects, ranging from initiating zoning plans up to completion.
“We are very pleased to announce this acquisition of an attractive portfolio with a strong operational platform via HD Ejendomme, which will significantly broaden our geographical footprint and operational reach. The Danish housing market remains healthy, supported by a favourable long-term economic outlook and strong demographic trends, and with this transaction, Heimstaden will manifest its position as the largest residential real estate company in Denmark,” said Christian Fladeland, Co-Chief Investment Officer of Heimstaden.
The transaction is expected to close early in 2021, subject to antitrust clearance.