In a strategic move to address Europe's growing housing crisis, Hines has made its first foray into the Swedish residential market, securing a forward funding agreement with Magnolia Bostad to deliver 310 residential apartments for rent in Kista, Stockholm.
The transaction, executed on behalf of the Hines European Core fund (HECF), marks the global real estate investor's second acquisition in Sweden, following January's industrial asset purchase in Jönköping through its Hines European Property Partners (HEPP) fund. That earlier deal comprised approximately 129,500 m² of industrial space, demonstrating Hines' growing commitment to the Nordic region.
Hines' proprietary research from March 2025 reveals the urgency behind this residential push, indicating a staggering shortage of 6.5 million housing units needed to meet current demand across key developed economies. This acquisition not only positions Hines strategically in a supply-constrained market but also addresses Stockholm's pressing need for quality rental accommodation at a time when rising mortgage rates continue to push more Swedes toward rental options.
"The creation of rental accommodation in areas of high demand and low supply is a high-conviction investment theme for Hines and the European Core fund and we are delighted to secure this opportunity on behalf of our investors. This development shows how institutional capital can be deployed to deliver both value for our investors and the high-quality housing supply Sweden and Europe so clearly needs. We are looking forward to exploring opportunities to add more residential-for-rent assets to our growing portfolio," said Simone Pozzato, Senior Managing Director at Hines and Fund Manager of HECF.
"We are delighted to have made our first deal of 2025 and to enter the Swedish residential market, delivering much needed, quality new homes for the community in Stockholm. We look forward to working closely with Magnolia Bostad to complete this project and we want to thank them and our advisors for their hard work and collaboration," added Staffan Unge, Senior Managing Director and Country Head - Nordics at Hines.
The project, targeting a Miljobyggnad Silver sustainability rating, comes amid increasing investor interest in Stockholm's residential market, where vacancy rates have fallen below 1% and rental growth continues to outpace inflation by nearly 2%. Industry analysts suggest this acquisition could signal the beginning of a broader institutional push into Nordic residential, with potential for €5bn in similar transactions expected across the region by year-end.
Hines was advised by Cederquist, Tjuren, EY, Bergama & Newsec.
People mentioned:
- Simone Pozzato - Senior Managing Director at Hines and Fund Manager of HECF
- Staffan Unge - Senior Managing Director and Country Head - Nordics at Hines
Companies mentioned:
- Hines - Global real estate investor, developer and manager
- Magnolia Bostad - One of the largest Swedish residential developers
- Cederquist - Legal advisor
- Tjuren - Advisor
- EY - Financial advisor
- Bergama - Advisor
- Newsec - Property advisor
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