Sweden's KPA Pension continues to increase property investments

Sweden's KPA Pension has announced plans to expand its ownership interest in Heimstaden Bostad AB, a private residential property company, following the company’s acquisition of Akelius’ homes in Sweden, Germany and Denmark.

KPA Pension, which is part of the Folksam Group, previously invested SEK 1.9bn in Heimstaden Bostad AB, with today’s announcement bringing a further SEK 8bn investment, representing an around 10 per cent holding in Heimstaden capital.

The investment was made following Heimstaden Bostad's acquisition of Akelius' Homes, which included properties located in the metropolitan areas of Stockholm, Malmö, Berlin, Hamburg and Copenhagen.

Heimstaden Bostad AB has also recorded “sharp” growth in its property portfolio over recent years, standing at SEK 186bn as of June 30 2021.

KPA Pension CEO, Camilla Larsson, commented: “We continue our work to diversify the asset portfolio and it is therefore gratifying that we are now increasing our real estate investments further.

“We follow our long-term strategy of being the occupational pension company that gives municipal and regional employees a good and sustainable return.”

Indeed, KPA also announced plans to increase its investment in property and alternatives earlier this year, by acquiring an area of property on Kungsholmen in Stockholm from Invesco for SEK 2.3bn.

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