Norwegian mid-market player Reiten is to sell Heimstaden AS to Fredensborg Eiendomsselskap AS (Fredensborg) for SEK1.9bn (approx. €203m). The total return on the investment is undisclosed.
Headquartered in Malmö, Sweden, Heimstaden owns and manages 76 residential properties representing more than 2,260 apartments and over 180,000 square metres as well as two commercial properties.
Reiten invested an undisclosed amount in Heimstaden at the beginning of 2004. Under Reiten’s ownership, Heimstaden’s strategy was refined and its real estate portfolio was significantly streamlined and restructured with the disposal of non-core assets and the addition of five portfolios of residential assets consisting of 33 properties.
In April 2005, Reiten completed a SEK1,519m recapitalisation of Heimstaden, which generated a dividend payment of NOK196m to Reiten Funds, representing 72% of the funds’ total equity investment in the company. After the refinancing Reiten & Co retained its 56% equity stake in Heimstaden.
Kathryn M. Baker, chairman of the board of Heimstaden and a partner at Reiten & Co, said: “We are very pleased with the developments at Heimstaden which exemplify Reiten’s approach to partnering with management and creating value at its portfolio companies. Our hands-on approach has transformed Heimstaden into an attractive target for Fredensborg and enabled the refinancing we arranged earlier this
year. Heimstaden will have generated handsome returns for our investors.”