Swedish property giant Heimstaden Bostad has announced the purchase of a newbuild portfolio with 2,496 homes in Poland for SEK 3.1 bn (€310 mln) from the Polish residential development company, Budimex.
The portfolio is located in five of the largest cities in Poland: Warsaw, Krakow, Wroclaw, Poznan and Gdansk. It consists of 13 projects to develop 2,496 apartments (131,806 m2), 5,202 m2 of retail space, and 2,870 parking spaces. The package is expected to generate a gross rental income of SEK 246 mln a year and a net operating income of SEK 179 mln.
‘This expansion will strengthen our presence and make us a leading provider of rental housing in Poland. It also enables the establishment of an efficient management platform that will provide Friendly Homes to our Polish customers for years to come,’ said Stanislav Kubácek, senior managing director of Heimstaden’s Investment Team for CEE and Germany.
The transaction is structured as forward funding commitments with Budimex as the developer. Heimstaden will make partial payments throughout the development phase based on construction milestones. Construction will begin in 2021 and the projects will be completed between Q1 2023 and Q1 2025.
Earlier this month Heimstaden Bostad also announced that it had entered the UK market with the acquisition of the Soho Wharf development project with 752 residential units in Birmingham for SEK 1.9 bn (£160 mln) from Apsley House Capital and Galliard Homes.