Slättös value-add fund invests SEK 3 billion in Swedish student housing | News

Nordic private equity real estate investor Slättö has invested SEK 3.1 billion (EUR 270 million) on behalf of a new value-add fund to acquire a 40 percent stake in a student housing portfolio in Sweden.

Slättö said the portfolio, which consists of 3,000 student housing units in Sweden’s university towns, was acquired through a joint venture with Swedish real estate company Knaust & Andersson Fastigheter (K2A).

K2A will manage the joint venture’s portfolio, which consists of 75% new-build properties.

Jonas Andersson, deputy managing partner at Slättö, said the transaction was the first investment by Slättö’s new fund under the value-add strategy with which Slättö “continues to deliver strong risk-adjusted returns to our investors”.

Andersson added: “This acquisition strengthens our position as one of the few players able to seize opportunities in an uncertain market and handle complex deals.

“Given the price correction in the Nordic market and the strong deal flow from sellers looking to transact off-market, we believe 2024 will be an exceptionally strong fund year.”

Christian Bratt, Partner and Head of Residential at Slättö, said: “The current combination of rental growth potential and entry-level prices makes this an attractive time to invest in residential property. We see great value in acquiring a purpose-built, high-quality student housing portfolio that is rarely available on the Swedish market.

“Students enrolled in educational programs eligible for financial aid also have a predictable financial situation, making this a safe investment with great potential. We very much look forward to working with K2A to effectively manage and further enhance the portfolio.”

Click here to read the latest IPE Real Assets magazine.