Vonovia targets Sweden market with €892mn Victoria Park acquisition
Vonovia has filed a takeover offer worth €892mn for the Sweden-based property firm Victoria Park.
Germany's biggest real estate company is taking its opportunity after US-based venture capitalists Starwood Capital had a less attractive bid for Victoria Park rejected last month.
Vonovia - which runs a portfolio of around 394,000 residential homes mainly in urban areas in Germany - is keen to make a mark in the Swedish market due to its lucrative potential and the comparative nature of the countries' regulatory frameworks.
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The likely acquisition marks the latest effort from Vonovia to fulfil its internationalist ambitions, with the Bochum-based giant recently having taken over two firms in Austria and entered into a strategic partnership in France.
"We are very excited about entering the Swedish market for the first time, and we are particularly happy that we identified Victoria Park as a company that follows the same business principles," said Rolf Buch, CEO of Vonovia.
"When we were made aware of the situation by Victoria Park's financial adviser and we started to consider an amicable offer to Victoria Park's shareholders, we realised that the company's management is like-minded, and that we share the same business philosophy - strong investment in housing for the long-term benefit of tenants."
Victoria Park's CEO Per Ekelund added: "I am convinced that a combination of Victoria Park with Vonovia has a strong strategic rationale. More importantly, both companies follow a long-term course where the tenant's satisfaction is a central management goal."