Swedish Pensions Agency enters real estate sector with €98m equity investment in Heimstaden Bostad

The Swedish Pensions Agency is believed to have made its first real estate investment ever with a commitment to invest SEK 1 bn (€98 mln) in European residential landlord Heimstaden Bostad.

Heimstaden Bostad, Europe’s third largest residential real estate company, said that the firm is entering the company’s share capital at the same terms as the other institutional owners which include pension fund Alecta, mutual group Folksam, the Ericsson conglomerate and engineering group Sandvik, which all invest together with operational owner/manager Heimstaden AB.

‘The Swedish Pensions Agency is a strong institutional investor that shares Heimstaden Bostad’s long-term perspective and dedication to societal and environmental efforts. We are very pleased to welcome them as a partner, which strengthens our position to further develop our existing portfolio and execute on our ambitious strategy for sustainable growth,’  said Magnus Nordholm, deputy CEO at Heimstaden.

As part its SEK 1 bn commitment, the SEK 53 bn Swedish Pensions Agency has already invsted SEK 500 mln or half the amount as part of a SEK 8.5 bn share issue carried out by Heimstaden Bostad this week. The company can draw on the remaining SEK 500 mln commitment over a three-year period.

The share issue executed this week was subscribed by Heimstaden for SEK 3.58 bn, Alecta for SEK 3.86 bn, Folksam Group for SEK 432 mln, Ericsson for SEK 43 mln and Sandvik for SEK 49 mln. The share issue consisted of SEK 4.3 bn in reinvested dividends and SEK 4.2 n in new cash contributions.

Based in Malmö, Sweden, Heimstaden Bostad owns about 110,000 homes with a property value of SEK 170 bn, with target markets being the EU, Switzerland, Norway and the UK. Last year Heimstaden bought a Danish residential portfolio for €1.6 bn in the biggest transaction of the year in the Nordics and one of the largest in Europe. 


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