PATRIZIA AG, a leading partner for global real assets, has acquired a residential development project in Malmö, Sweden, in the attractive suburb of Hyllie from Slättö, a real estate fund manager specialising in the Swedish market, for approx. EUR 100 million.
Scheduled to complete in Q4 2021, the development will deliver 427 modern residential units comprising one to four-bedroom apartments for rent. The building will also receive a “Green Building Silver” certification according to the Swedish Green building council.
Hyllie is a well-known residential and commercial district in the south of the city. The development is strategically located in close proximity to the Emporia Shopping Centre and benefits from excellent transport links via the nearby Hyllie railway station.
Jörg Laue, Head of Transactions for PATRIZIA in the Nordics, commented: “This is an exciting residential development project in an upcoming area of one of Sweden’s major cities. The units will be finished to a high standard and will help meet the growing demand for modern apartments in Malmö. We continue to look for opportunities to grow our exposure to the residential sector in Sweden, particularly around Stockholm, Malmö, Gothenburg.”
Johan Lagerdahl, Country Manager and Head of Asset Management for PATRIZIA in Sweden, said: “The defensive profile of the Swedish residential sector means that we will be able to deliver secure and stable income to our investors. The market is underpinned by favourable supply demand dynamics, due to a growing urban population and limited availability of suitable housing.”
PATRIZIA Sweden’s property portfolio now totals EUR 400 million AUM with the residential sector representing around 20% of the portfolio. PATRIZIA’s Nordic exposure totals more than EUR 1.7 billion AUM.
From the very beginning of its company history, PATRIZIA has been active in the residential space. The company currently has funds and mandates of over EUR 11.5 billion in the residential.
PATRIZIA was advised by Jones Lang LaSalle (commercial) and Cederquist (legal).