Target Information

CapMan Real Estate has signed an agreement to acquire a 262-unit multifamily housing development project located in Handen, Haninge, Greater Stockholm. This project, facilitated through CapMan's third value-add fund, CapMan Nordic Real Estate III (CMNRE III), encompasses a total lettable area of 12,119 square meters and is set for completion by the second quarter of 2028. Construction will be carried out by Consto, a reputable construction firm known for its quality work.

The development is strategically situated in Handen, a vibrant area just south of central Stockholm. It is part of a broader revitalization initiative around Handen's railway station and bus terminal, which enhances its urban appeal. The location is well-connected to the Haninge Shopping Centre and Handen Station, ensuring a swift 20-minute commute to Stockholm's city center. This site also benefits from a structural undersupply of modern rental housing, positioning it favorably in the market.

Industry Overview in Sweden

The multifamily housing market in Sweden is experiencing significant growth, driven by urbanization and an increase in population. The demand for rental properties, especially in metropolitan areas like Stockholm, has surged due to factors such as rising housing costs and a shifting preference towards renting over buying. This trend indicates a stable demand for multifamily units, particularly in well-connected locales.

As Sweden recovers from the economic impacts of recent global events, the government continues to invest in infrastructure and public services, further enhancing the attractiveness of urban living. The introduction of policies aimed at sustainability and energy efficiency also aligns with the increasing global focus on environmentally friendly construction practices.

Recent developments indicate a push for innovative construction methods and sustainable housing solutions in Sweden. Projects that meet stringent environmental standards are gaining attention and support from both policymakers and investors. This creates a favorable landscape for multifamily housing projects that prioritize sustainability and modern living standards.

Overall, the Swedish housing market remains resilient, marked by a balance of supply and demand, particularly in areas undergoing revitalization like Handen, where modern rental solutions are urgently needed.

Rationale Behind the Deal

The acquisition of this multifamily housing project aligns with CapMan Real Estate's strategy to expand its residential portfolio in Stockholm, capitalizing on the growing demand for modern housing. The development is deemed a high-quality investment opportunity that addresses the pressing need for rental units in a region experiencing significant urban growth.

By partnering with Reliwe and Consto, CapMan leverages the local expertise and experience of these well-established developers, allowing for effective execution of the project while adhering to ambitious sustainability targets.

Investor Information

CapMan is a leading Nordic private equity firm with extensive experience in real estate investments, managing approximately €5.5 billion in assets. The firm operates across multiple locations, including Helsinki, Stockholm, and London, demonstrating a robust presence in the unlisted market.

With a commitment to delivering value through strategic investments, CapMan has established itself as a pioneer in the Nordic region. The firm is dedicated to creating positive environmental impacts and has set significant greenhouse gas reduction targets, reaffirming its commitment to sustainable practices in all investment activities.

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This acquisition presents a compelling investment opportunity within a thriving market segment. CapMan's focus on sustainability and modern living aligns well with current trends in urban housing, suggesting a high likelihood of demand for the completed units. The strategic location and the ongoing transformation of Handen further enhance the project's appeal.

Moreover, the partnership with experienced local developers ensures that the project will be executed with quality and efficiency in mind. This collaborative approach mitigates typical risks associated with new developments, notably in navigating regulatory and construction challenges.

CapMan's robust pipeline and the timing of this investment are particularly advantageous, positioning the firm to capitalize on favorable market conditions. As urban centers in Sweden continue to develop, this project is likely to yield attractive returns, reinforcing CapMan's reputation as a leader in Nordic real estate.

In conclusion, the acquisition is expected to be a successful addition to CapMan's portfolio. Its alignment with sustainability goals, strategic location, and partnership with trusted developers suggest a strong potential for positive impact both financially and socially within the community.

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