Arctica Finance facilitated the acquisition of Heimstaden in Iceland from Fredensborg AS, enhancing the rental housing market with plans for strategic expansion.

Target Information

The target of this deal is Heimstaden, which operates a substantial portfolio of approximately 1,600 rental units in Iceland. The company is sold by the Norwegian investment firm Fredensborg AS, a parent company of Heimstaden Bostad AB, regarded as one of the largest residential property companies in Europe. This acquisition signifies a strategic move for the buyer, aimed at enhancing operations in the Icelandic rental market.

Industry Overview in Iceland

The rental market in Iceland has experienced significant growth over recent years, driven by increasing demand for residential properties, particularly in the capital region. The urbanization trends and population growth in cities like Reykjavík have created a robust housing market characterized by a limited supply of rental units, thus intensifying competition among landlords.

In addition, Iceland's economic environment has remained relatively stable, promoting investments in real estate sectors. The government's support programs to increase housing accessi