Heimstaden ehf. is the largest residential real estate company in Iceland with 1,637 homes located primarily in and around Reykjavik with a property value of approximately SEK 3.8 billion (ISK 55 billion) as of 31 March 2021. The portfolio has a GRI of SEK 260 million p.a. and current occupancy of 90%.
Heimstaden ehf., previously Heimavellir hf., was acquired by Fredensborg ICE ehf., a fully owned subsidiary of Fredensborg AS, in 2020 and subsequently delisted from Nasdaq Iceland. Since then, Heimstaden ehf. has initiated extensive asset management projects, added new properties to the portfolio and reduced financial expenses through debt refinancing. As at 31 March 2021, the company had a net loan-to-value of 51%.
Heimstaden ehf. has been managed by Heimstaden since January 2021 and, with this transaction, Heimstaden will establish itself as a market leader, laying a strong foundation for future growth in Iceland with opportunities to extract operational synergies.
Most of Heimstaden’s investments are made indirectly through its ownership in Heimstaden Bostad AB, Heimstaden’s primary investment. Because Iceland falls outside Heimstaden Bostad’s geographical mandate – the EU, Norway, Switzerland, and the UK – Heimstaden makes this acquisition directly.
The transaction is financed with cash at hand. Heimstaden was advised by BBA//Fjeldco and KPMG Iceland.