Heimstaden expands rental portfolio in Poland
Heimstaden Bostad, a leading pan-European investor in multifamily assets for rent, announced the purchase of 2,500 apartments from Budimex Nieruchomości. JLL had the great pleasure to advise the buyer in the largest ever transaction in the Polish living sector
The transaction volume reached PLN 1.4 billion (SEK 3.1 billion, ca. EUR 310 million) and comprised 2,500 apartments in different stages of development. This is approximately 40% of the current pipeline of Budimex Nieruchomości in Poland. Heimstaden will take over these properties incrementally over the next 2-5 years.
This is already the third deal of Heimstaden Bostad on the Polish market. Following the transaction of three buildings from Marvipol in Q1 2021 and the earlier acquisition of two buildings from Eiffage, the current transaction not only expands Heimstaden’s footprint on the market but also increases its geographic reach into the regions.
"The transaction announced today will make us the leading provider of rental housing in Poland in the upcoming years. We will acquire apartments not only in Warsaw but will go for the first time also to Gdańsk, Kraków, Wrocław and Poznań," comments Stanislav Kubáček, Head of Heimstaden's Acquisition Team for Central and Eastern Europe and Germany.
Combining this deal and the previous ones, Heimstaden will in total take over around 4,000 apartments in five cities over the next five years. Later this year, the first of these rental properties will be launched for rent on the market, starting from Warsaw.
"The deal of Heimstaden is yet another proof for the attractiveness of the Polish living sector. Poland has eventually emerged as a new destination for cross-border capital, with residential being the flavour of the day. There is a strong fundamental demand for rental housing, while the returns for investors are by far higher than in Western Europe. On top Poland’s polycentric urban structure offers scalability. Investors increasingly recognize these strengths and rightly build on them." comments Maximilian Mendel, Head of Living Investment, responsible for JLL’s team advising on the commercial side on behalf of Heimstaden in this transaction.
Heimstaden Bostad was also advised by Dentons (legal), Deloitte (tax), Arcadis (technical) and Leach & McGuire (operations) on the transaction.
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