Barings has acquired a 264-home development opportunity in Stockholm, Sweden, from Innovation Properties on behalf of a private insurance client. The parties agreed not to disclose the purchase price.
The development in central Skogas, in the Stockholm suburb of Huddinge, is made up of four buildings containing 264 apartments. Construction will begin in February 2024, and will complete in phases between the middle and end of 2025. Innovation Properties remains a partner in the project.
Construction of the scheme is entirely through wood via local construction company Lindbacks, a specialist in timber construction, significantly reducing the carbon footprint in construction compared to traditional construction in concrete and steel. The scheme further benefits from high sustainability credentials, reaching Swedish “Miljobyggnad silver” and EPC A rating, as well as having solar panels and geological heating supported by district heating schemes.
The development is less than four minutes’ walking distance from a station connected to the main commuter train line in Stockholm Country, bringing its future residents into the centre of the city in just 20 minutes on the train. Estimates from Sweden’s Housing Authority suggest 26,800 new homes are needed per year in the Stockholm region until 2030, which compares to forecasted construction starts of 4,000 homes per year.
Andreas Norberg, Managing Director and Head of Nordics at Barings Real Estate, said: “Given the chronic shortage of homes in Stockholm, this agreement will bring very much needed, beautiful new homes to the community. Working with our partners at Innovation Properties and the Municipality of Huddinge, we look forward to welcoming residents into their new homes from the middle of next year. As we expand our living assets in Stockholm through this acquisition, we are eager to continue investing capital into residential property in Sweden and throughout the Nordics, recognising the importance for the communities and investors we serve.”
Gunther Deutsch, Managing Director and Head of European Transactions at Barings Real Estate, said: “This transaction comes as part of a series of recent deals focused on the living sector in our preferred markets in Europe, and is a great example of our approach across the continent: namely, identifying partners with whom we can initiate joint ventures, build strong relationships to deliver high-quality real estate, particularly in BTR and BTS, student accommodation, logistics, and in prime offices in core city centre locations. We have doubled our European residential investment volume in 2023, and we are keen to expand the residential footprint further in 2024.”
Image provided by SECNewgate.
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