Swedes move in on English buy-to-let action

Swedish fund Akelius has quietly built a huge buy-to-let property portfolio in England, after starting its buying spree only six months ago. It now owns 700 units and plans to acquire another 300 in the next nine months.

Hamptons, part of Countrywide, has been appointed to manage the porfolio.

Akelius’s first purchase, of 16 tenanted units in Clapham for £4.25m, was last October.

As well as its growing portfolio in England, the fund owns 35,000 residential properties in Sweden and Germany worth £3.1bn.

This week, it announced completing on two more acquisitions in London and the South-East costing £84.45m.
 
One of the deals was among the largest residential property transactions in recent years, involving the purchase of 574 apartments from Terrace Hill for £75.35m.

The tenanted properties are spread across 26 sites in locations such as Clapham, Ealing, Kennington, Watford and Milton Keynes.
 
In December, Akelius purchased Pelham and Waverley Court, with 81 tenanted units, in Horsham, Sussex, from Grainger for £9.1m.

Akelius has now invested nearly £100m in acquiring and refurbishing UK residential property. Its total UK portfolio now stands at close to 700 units.
 
Lars Lindfors, managing director of Akelius UK, said: “Our recent acquisitions have focused on areas with good transport links in London and the South-East, which we see as our core market.

“We will continue to grow our UK portfolio and hope to have at least 1,000 units by the end of the year. We are in the process of refurbishing the properties we have already acquired to Akelius standard by installing new kitchens and bathrooms, renovating the common areas and landscaping grounds, for example.

“Our aim is to set a new standard for private rented sector accommodation in the UK.”
 
The property consultant who has been advising Akelius is Chris Lacey, head of residential investment and funding at CBRE.

He said: “Akelius has demonstrated its commitment to the UK residential market by purchasing a significant selection of well-located assets in cash. Akelius’ latest transaction with Terrace Hill will take its total portfolio of residential apartments in the UK to nearly 700, which is impressive in such a short timeframe.

“We have already identified a number of interesting new prospects for Akelius to add to their UK portfolio.”
 
The Hamptons win of the portfolio is said to be the first time that such a large portfolio has been managed by a central management and letting agent.

Jonathan Pitt, director at Hamptons, said: “Our residential portfolio management department will offer Akelius a breadth of coverage which spans London and the South-East while maintaining a central management hub. 

“Being able to provide services across the UK and all under one roof is a unique proposition for clients like Akelius who own multiple properties in today’s market.”