Heimstaden buys project property in Ystad

Heimstaden Bostad AB has acquired Magnolia Bostad project Vrakbåten in Västra Sjöstaden, Ystad Municipality. The project started production in December 2019 and includes development of approximately 225 apartments. Estimated property value at completion amounts to approximately EUR 36 million.

The project is located in Västra Sjöstaden with direct proximity to the sea, grocery stores, playgrounds, school, preschool and beautiful nature. It takes about 15 minutes by bicycle to the city center and the city bus runs with half hour traffic. Build contract has already been signed with Derome and construction is expected to start in autumn 2020 where the first stage is ready for tenants in 2022.

The project is the third acquisition within the framework agreement signed with Magnolia. The framework agreement means that Heimstaden Bostad will acquire housing projects comprising 14 projects of approximately 5,300 apartments by Magnolia Bostad, valued at approximately EUR 860 million.

“Environmental and society sustainability and quality are key words when we are developing. Together with Magnolia and Derome, we will in this project fulfill this in a good way with densification of the city, construction in wood, certification according to Environmental Building Silver and rents set based on investment grants”, says Sara Macdonald, Head of Asset Management, Heimstaden.

”We are, despite the challenging times, continuing to work, do business and develop both the company and Sweden for existing and future customers” says Tom Rasmussen, Senior Investment Manager, Heimstaden.

The project consist of four buildings with six floors as well as a parking garage. Magnolia Bostad will develop and run the project until the buildings are ready for occupancy, which is expected to start in 2022.

Falkenborn Law Firm has acted as legal advisor to Heimstaden and Wistrand Law Firm has acted as legal advisor to Magnolia Bostad.