Swedish fund makes strong move into UK property

Swedish property fund Akelius has invested £84.45 million (EUR 101 million) in the UK residential properties part of the its growth strategy.

Akelius’ recent purchase of 574 apartments from the UK firm Terrace Hill for £75.35 million has made it one of the largest residential property transactions in recent years.

The tenanted properties are spread across 26 sites in Akelius' core areas of London and the South East of England. Lars Lindfors, managing director of Akelius UK, said the company aims to have at least 1,000 units by the end of 2012. “We are in the process of refurbishing the properties we have already acquired to Akelius standard by installing new kitchens and bathrooms, renovating the common areas and landscaping grounds for example. Our aim is to set a new standard for private rented sector accommodation in the UK”, he added.

In December, Akelius purchased Pelham and Waverley Court, the freehold property comprising of 81 tenanted units in Horsham, from Grainger for £9.1 million. Since Akelius' first £4.25 million worth UK acquisition in October 2011, the fund’s UK portfolio has now grown to nearly £100 million and it currently owns 700 properties across the UK.

Worldwide, the fund currently owns a total of 35,000 residential properties in Sweden and Germany with an assessed market value of £3.1 bn.

Source: OPP