Patrizia has made a strategic, landmark acquisition in Sweden by investing circa €350m in a premium Stockholm residential portfolio through the pan-European open-ended residential strategy, Living Cities. The transaction, once closed, will propel the Living Cities strategy to €2bn AUM and increase the company's current residential AUM to around €17bn.
“The area of Stockholm offers stable income return and long-term capital growth. Thanks to its affordability and connectivity, combined with a strong imbalance between supply and demand, Stockholm often features in the top ten of the Patrizia European Living Cities Report which measures over 140 cities for their attractiveness as liveable cities,” said Jorg Laue, Head of Transactions Nordics, Patrizia. “Sweden’s economic powerhouse, Stockholm, is predicted to grow rapidly terms of population, so acquiring these turnkey, multi-family houses in such well-connected neighborhoods is a fantastic achievement in a competitive market. It also sets a new record for PATRIZIA as the largest residential acquisition in the Nordics in our history.”
The properties are all being constructed to one of the highest local ESG standards and will carry the Nordic Swan Ecolabel certification.
“With this latest acquisition for Living Cities in Stockholm, we continue to invest in high quality, powerful cities. We also continue to see investor demand for our flagship pan-European residential strategy with a focus on strong and stable income streams. As the Fund grows towards €3bn, we are excited about sourcing new opportunities in the market,” said Sebastian Dietert, Fund Manager of the Living Cities Fund at Patrizia. “We will not only focus on multi-family schemes for Living Cities but will increasingly diversify into alternative residential assets, such as student accommodation and senior living.”