Hines Makes First Move Into Swedish Residential Market
Deal News | Apr 29, 2025 | Hines Interests LP
Hines, a global real estate investor, developer, and manager, announced its first venture into the Swedish residential market through the acquisition of a forward funding agreement with Magnolia Bostad, a leading Swedish residential developer. This agreement will allow for the development of 310 rental apartments in Kista, Stockholm, under the Hines European Core Fund (HECF). The acquisition represents Hines' second venture in Sweden, following a substantial industrial asset purchase in Jönköping. The company's proprietary research indicates a significant global demand for new housing units, which aligns with their investment strategy. Hines' commitment to the creation of high-quality residential properties in high-demand areas is further showcased by this project, which aims for a Miljobyggnad Silver rating. After receiving comprehensive advice from firms such as Cederquist and EY, Hines evaluates this investment as a strategic enhancement to their portfolio and anticipates further expansion in the Nordic region.
Sectors
- Real Estate Development
- Investment Management
Geography
- Sweden – The main geographic focus of the article is Sweden, specifically the cities of Stockholm and Jönköping where Hines has acquired assets.
- Europe – Hines European Core Fund operates across multiple European countries and the acquisition in Sweden aligns with continental strategies.
Industry
- Real Estate Development – The article discusses Hines' acquisition and development activities in the real estate sector, particularly residential properties in Sweden.
- Investment Management – Hines, through its European Core Fund, directs investment capital towards real estate projects with potential returns for investors.
Financials
- EUR 3.1 billion – Total fund value of Hines European Core Fund (HECF) at the end of 2024.
- $90.1 billion – Total assets owned and operated by Hines as of December 31, 2024.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Hines | Acquirer/Developer | Company | Hines is a global real estate investment, development, and management firm. |
| Magnolia Bostad | Target | Company | Magnolia Bostad is one of the largest Swedish residential developers. |
| Hines European Core Fund (HECF) | Investment Fund | Company | HECF is a fund managed by Hines focused on creating diversified portfolios in Europe. |
| Cederquist | Legal Advisor | Company | Cederquist is a law firm that advises Hines on the acquisition deal. |
| EY | Corporate Advisor | Company | EY provides transactional and financial advisor services to Hines. |
| Tjuren | Advisor | Company | Tjuren provided advisory services during the transaction. |
| Newsec | Advisor | Company | Newsec offered market and transaction advisory services. |