Hemsö and Lantmännen have formed a joint venture to develop and manage properties for public use. The focus will be primarily schools and nursing homes.
The parties’ initial investment in the company, of which they each hold 50 per cent, amounts to SEK 540 million and comprises a portfolio of four school and nursing home properties and a nursing home project, all located in the Stockholm and Malmö area. Both the initial portfolio, whose properties comes from Lantmännen’s existing portfolio and the future completed project properties will be under the ownership of the joint venture. The cooperation is long-term and will initially comprise between five and ten projects with an estimated value of SEK 3 billion within a five to seven-year period.
Lantmännen currently owns a small portfolio of properties for public use, comprising schools and nursing homes, and a comprehensive bank of land assets with major potential across the country. Hemsö has extensive experience of properties for public use and a well-established project organisation, which will be used in land development.
“Together with Lantmännen, we now have unique possibilities to contribute to social development. Lantmännen is a long-term, stable and serious partner with access to land in attractive city locations. Hemsö has solid knowledge and experience of project development and building the modern, purposed-designed schools and nursing homes of the future. We complement each other extremely well,” says Hemsö’s CEO Nils Styf.
“Hemsö has long experience of being a property company for community services and run project development. I am very happy to contribute to the development of modern properties for public use together with Hemsö”, says Joachim Haas, CEO of Lantmännens Fastigheter.
Lantmännen is a cooperative owned by 25,000 Swedish farmers and has 10,000 employees and sales of SEK 37 billion. The association’s existing portfolio comprises about 150 properties in 80 locations.