“After a successful cooperation in the first year in Sweden, we are very pleased to further expand our partnership with Heimstaden Bostad into Germany. With two experienced, likeminded partners working together, we are well positioned to deliver the ESG improvements needed to meet our decarbonization targets,” says Nicole Pötsch, Head of Investments & Strategic Development for North & Central Europe, Allianz Real Estate.
“We are happy to join forces once again with Allianz, a partner who matches our ambitions and commitment to responsible and sustainable housing. Together we create a strong voice in the residential real estate sector, and we look forward to working with Allianz Real Estate in strengthening our German footprint, adding new, strategically important locations to our portfolio. Following the transaction, Allianz becomes our third largest institutional partner with more than SEK 15 billion (approx. EUR 1.4 billion) invested with us,” says Christian Fladeland, Chief Investment Officer at Heimstaden.
In December 2022, Heimstaden Bostad and Allianz’s joint venture, Heimstaden Eagle AB will issue SEK 7,000 million in new equity to repay debt to Heimstaden Bostad, where Allianz will provide SEK 3,938 million (EUR 365 million) and Heimstaden Bostad will provide SEK 3,062 million (EUR 285 million). Accordingly, the net cash effect for Heimstaden Bostad is SEK 3,938 million (EUR 365 million).
Heimstaden Bostad and Allianz form a new joint venture through Heimstaden Bostad’s cash investment of EUR 262 million (SEK 2,815 million) in Allianz’s German residential real estate portfolio. The new joint venture will own 38 properties with 3,135 homes located in Düsseldorf, Greater Munich, Cologne, Bonn, Berlin, and Stuttgart with a current occupancy of 97%. The joint venture adopts Heimstaden Bostad’s sustainability programme and has committed EUR 84 million to ESG improvements, mainly focused on energy optimization with the goal of reducing greenhouse emission in line with the Paris Agreement.
The transaction is conditional upon merger clearance by the German Federal Cartel Office and is expected to be completed in December 2022.
The new joint venture will be funded with equity, including Heimstaden’s EUR 262 million investments as well as external debt financing targeted at 30% LTV to be obtained during 2023.