BauMont seals €550m Swedish residential partnership

M&G Investments-owned BauMont Real Estate Capital has formed a residential partnership with Swedish specialist SBF Fonder with plans to invest up to SEK6bn (€550m), Green Street News can reveal.

The partnership targets investments in the Stockholm region. The initial investment phase will deploy up to SEK2bn, with the potential to scale the partnership to approximately three times that level.

The strategy focuses on acquiring rental properties and unsold units, for example in new developments, with value creation driven by active asset management and selective repositioning.

With more than 20 years of experience in the Swedish residential market, SBF is seeking to grow assets under management to SEK10bn with domestic and international investors. The partnership is the firm’s third with international investors and the firm is looking to execute more large, complex strategies within residential real estate and social infrastructure.

Sweden’s liquid and transparent real estate market is backed by strong macroeconomic fundamentals and a robust banking sector. This combination provides a stable and attractive investment environment for international capital, particularly in the residential sector.

SBF was advised by placement agent Halkum Capital Advisors and Law Firm Kane. BauMont was advised by Gernandt & Danielsson.

Johan Rosén, chief investment officer at SBF Fonder, said: “In a rental market where the cost of home ownership in many cases is lower than rental levels, there is a clear opportunity for investors capable of executing active, valueenhancing strategies while enabling tenants to take the step into homeownership.”

Terje Björsell, chief executive officer at SBF Fonder, added: “Over the past three years, we have deliberately strengthened our scalable platform. SBF is well positioned to manage capital across multiple risk strategies and sees opportunities to further broaden its offering going forward. SBF’s longestablished and long-term investments in rental residential assets through fund structures continue to develop, not least through our work in energy,
sustainability and social initiatives.”