SigtunaHem and Sigtuna municipality, advised by Savills, has sold a portfolio of residential and public properties to Rikshem for SEK 1,7 billion, which equates to €190 million.
SigtunaHem and Sigtuna municipality, advised by Savills, has sold a portfolio of residential and public properties to Rikshem for SEK 1,7 billion, which equates to €190 million. The transaction is the largest sale of properties held by a municipality this year.
The properties include 1,100 rental apartments, which is one fifth of the apartments owned by SigtunaHem, and also includes 60,000 sq m of public properties, health and social care accommodation, schools and kindergartens.
Ulf Nilsson, CEO at Savills Sweden, says: "Residential properties and public assets are in high demand and attract a wide range of investors."
SigtunaHem intends to use the capital freed up by the transaction to strengthen their balance sheet and also to invest in their remaining portfolio and new developments.
Peter Wiman, Head of Research at Savills Sweden, comments: "Residential properties erected in the sixties and seventies continue to pose a significant challenge for property owners. Selling properties is an opportunity for public housing companies to free up capital needed for investments in their older properties and place it into new developments."
Rikshem is co-owned by the pension funds fjärde AP-fonden and AMF with the purpose of investing in housing and public properties. The transaction is the fourth major deal carried out by company this year.