Barings makes first investment in Swedish residential market
Barings Real Estate has secured six high-quality residential buildings in Stockholm through a forward commitment. The buildings will be developed over five phases and will comprise 610 apartments for rent in Bromsten, in the city of Stockholm, where there is currently a chronic undersupply of residential accommodation for rent.
The investment is part of our pan European core investment strategy on behalf of institutional investors. The seller is a joint venture between Slättö VII and listed property company Fastpartner.
The six buildings comprise a mixture of one, two, and three-bedroom units, with an average size of 40 sq m. The apartments will be built to a high quality, with on-site car parking for approximately 300 vehicles. Excellent public transportation can easily be reached by the commuter train and bus transfer hub at Spånga Station, which is less than 1 km from the properties. Construction is expected to commence in early 2019 with completion in 2022.
The development partner is Slättö, a long-term owner, manager and developer of residential property in the growth markets of Sweden. Slättö has a reputation for developing responsible, sustainable and attractive residential property for communal living.
“This is a rare opportunity to access the Stockholm residential rental market with new purpose built buildings in a strong location. Aside our usual search profile for office, logistics and retail, residential and student housing are major themes for Barings in 2019, across the Nordics. Forward commitments represent an attractive means of securing good quality stock. This latest transaction continues to broaden Barings presence in the Nordics,” says Staffan Unge, Barings Managing Director and Real Estate Country Head for Sweden.