Colliers acted as financial advisors to K2A in the creation of a new Joint Venture company and the divestment of student housing with an underlying property value of SEK 3,121 million

K2A Knaust & Andersson Fastigheter has created a joint venture that acquires 2,990 student housing units from K2A. A transfer agreement has been signed with Slättö, which acquires 40 percent of the newly created JV company, while K2A retains 60 percent. The transferred student housing units represent all of K2A's student housing outside Stockholm, which amounts to approximately 72,000 square meters of rentable area. The total rental value is SEK 188 million. Colliers has been the financial advisor to K2A during the process.

The deal frees up liquid funds of SEK 660 million for K2A before transaction costs. The transfer of shares and receipt of the purchase price is planned for October 1, 2024.

André Lundberg, Head of Capital Markets & Partner at Colliers, says: "This transaction confirms the value of the quality housing that K2A holds and is a very good example that demonstrates the market's continued interest in transactions in Sweden."

Johan Knaust, CEO of K2A, says: "I am pleased with a successful deal that benefits both parties. By freeing up liquidity and thereby paying off a large part of the outstanding bonds, we strengthen our key financial ratios and the ongoing cash flow moving forward. I look forward to a good collaboration with Slättö, which will be a strong partner in the newly created company."

Christian Bratt, partner and Head of Residential at Slättö, says: "The current combination of rental growth potential and pricing makes this an attractive time to invest in housing. We see great value in acquiring a purpose-built, high-quality student housing portfolio that is rarely available on the Swedish market. Students enrolled in student aid-eligible programs also have a predictable financial situation, making this a secure investment with great potential. We very much look forward to working with K2A to efficiently manage and further develop the portfolio."