“Akelius Real Estate Management Ltd., Sweden’s largest private own multi-residential company, has set its sights on the Canadian apartment market.
Over the past few months the company has purchased five properties (209 apartments) in Toronto and intends to buy another 800 units this year. Canada’s largest city is its primary focus currently but Akelius does intend to buy in other major centres in the future.
Akelius, which has a property portfolio of 35,000 apartments in Sweden and Germany, views Canada as a place with characteristics that are very similar to its home market: relatively safe and stable and with a growing population due to a steady influx of immigrants.
“We researched the U.S. too and the [finding] was Canada has the good things of the U.S. but not the bad things,” said Jordan Milewicz, the President of Akelius.
Canada’s population growth, which Akelius figures will be powered by immigration of about 240,000 people per year, looks good when compared to forecasts for a declining population in Germany and recession or worse in much of the rest of Europe. “Germany is the only market I would say where you are able to purchase anything without any risk or with a small amount of risk.”
Beyond Toronto, Akelius will need to look at other large cities to reach its stated goal of 10,000 units within three to five years. Those include Montreal, Calgary, Edmonton, Vancouver and perhaps Halifax.
– from ‘Swedish Firm Aims to Buy 10,000 Apartments in Next 3-5 Years’, renx.ca, 26 Mar 2012
Forget the helicopters, the Swedes are coming!
We said we look for bullish stories as ardently as bearish, and Zerodown sent this along saying: “Here’s a bullish anecdote!”.
It is intriguing that the Canadian numbers look better to these guys (Vancouver included!?) when compared with the US.
The article ends: “The Wikipedia entry for Roger Akelius describes him as an entrepreneur and author of technical books on computer programming who is currently in his mid-Sixties. In 2010, it was reported that Akelius, who now lives in the Bahamas, would donate 100 million Kroner (about $15 million) over 25 years to a children’s charity in the wake of the earthquake in Haiti.”
Perhaps exactly what the Vancouver rental market needs… subsidies from foreign philanthropists!