Dentons has advised Heimstaden Bostad AB (Heimstaden), the third largest residential property owner and operator in Europe, on the acquisition of 13 build-to-rent (BTR) projects comprising of 2,496 apartments with a total area of 131,806 sq. m. from Budimex Nieruchomości. This is the largest transaction completed so far in the living sector in Poland.

The acquisition of the project from Budimex Nieruchomości is Heimstaden’s third transaction completed in Poland. In the past six months, the Swedish investor has concluded two similar deals: the acquisition of 647 apartments from Marvipol and the purchase of 640 residential units from Eiffage. As a result, over the next five years Heimstaden’s residential portfolio in Poland will reach approx. 4,000 units located in five Polish cities, making the company a leader in the domestic PRS (private rental sector) market.

The transaction worth approx. €310 million was structured as a forward funding and relates to the purchase of apartments at various stages of construction in five key locations in Poland including Warsaw, Kraków, Wrocław, Poznań and Gdańsk. The acquired portfolio will additionally offer 5,202 sq. m. of retail area and 2,870 parking spaces.

“This is not only the largest transaction in the private rental sector in Poland, but also one of the most comprehensive and complex that has been carried out since the beginning of 2021. The increased interest of foreign investors confirms the attractiveness and dynamics of the PRS market, and I am very glad that Dentons lawyers can support them in developing their operations in our country,” said Piotr Szafarz, Head of Dentons’ Real Estate practice in Poland and Central and Eastern Europe.

Piotr Szafarz led and supervised the project, and Evan Lazar, Co-Chair of Global Real Estate, gave strategic advice. The transactional team included partner Piotr Staniszewski, managing counsel Jarosław Stąpel and counsel Anna Garbula-Węgrzynowska, supported by associates Patrycja Pakla and Paulina Horodeńska-Wieczorek.

Earlier this year, Dentons advised Crestyl, the Czech developer, and Cornerstone, the Polish investment group, on the acquisition of Budimex Nieruchomości, the seller of the BTR project acquired by Heimstaden. The M&A transaction was completed in May 2021.

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