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16 november 2017

FAQ about the selling of properties

Here you can find questions and answers about the sale of properties in Mariehem and Carlshem.

Is Bostaden selling properties?

Yes, we are selling 1,601 apartments at Mariehem and Carlshem. We are selling all our properties at Carlshem and large parts of Mariehem. At Mariehem we are retaining some properties (around 150 apartments) close to the centre of Mariehem at the following addresses: Mariehemsvägen 5 A-N, 5 P, 7 D and 7 E.

What is the price tag?

The deal is estimated to be worth just over SEK 1.1 billion. 

Why are you making this sale?

The reason why we are selling our tenant properties at Carlshem and Mariehem is that we need to free up capital for both new production and future maintenance needs. This sale will enable us to keep up with population growth in Umeå by providing new housing, such as for older tenants – a target group that we know is set to increase in size in the future. We will also be in a better position to meet future maintenance needs, which means we can continue to keep our properties in good condition. 

When is Heimstaden taking over as landlord?

From December 15 Heimstaden will be your new landlord and from June 1, 2018 Heimstaden is taking over all aspects of management. Until June 1 2018, we at Bostaden will continue to handle fault reporting and management as before.

What does the investment in new production for the target group of the elderly involve?

Our investments include:

  • Mariehem centre: around 80 retirement apartments
  • Lodet block (current bus station): around 180 retirement apartments
  • Västteg: total of 300 apartments. Elderly centre with housing for the elderly (130 apartments) and retirement housing (100 apartments). We are also building 70 standard apartments.
  • Focken block (Haga): similar concept to Västteg (elderly centre)


Were there any alternatives to selling?

Our three options were a shareholder contribution, increasing our borrowing or selling properties. We chose option three, mainly because of the group’s overall debt position and future investment needs. Our owners want Bostaden to be self-financing.

Why has Bostaden chosen to sell to Heimstaden?

Heimstaden is a strong, long-term player that owns and manages tenant properties. They also take great social responsibility on the markets in which they own properties and they share our management strategy. Heimstaden also submitted the highest bid for the property portfolio.

Were there any interested parties other than Heimstaden?

Yes, we asked a total of ten housing companies to submit their prices for the portfolio. Three of these were selected to submit a final bid.

The sale will bring in SEK 1.1 billion. What is the time frame for this capital injection; in other words how long will the money last for future new construction and maintenance?

We will require further capital of around SEK 1 billion over the next decade, which we will finance primarily through new borrowing.

How many new apartments does Bostaden estimate it will build over the next five years?

Around 900 apartments.

Could more properties be sold?

We run Bostaden on a commercial basis and this means continuously working to adapt the property portfolio to market conditions. In other words, it is impossible to give a yes or no answer to this question.

Is there any lower limit for Bostaden’s market share?

Following this sale, our market share will be around 47 per cent. A common key performance indicator nowadays is 40–50 per cent for Allmännyttan.

Why these particular areas?

We needed to offer a continuous management area and a good-sized property portfolio in order to interest larger housing companies in investing and establishing themselves in Umeå.

Is it because the apartments are poorly maintained?

They are in good condition for apartments built in the 1970s.

Why are you retaining 150 apartments in the centre of Mariehem?

We want to take responsibility for the area and we will do this by developing it with new housing, a health centre and a grocery shop.

How will you be investing in the centre of Mariehem?

We are retaining 150 apartments and we have a plan for how we want to develop the centre of Mariehem, with new housing, a health centre and a grocery shop.

A new player in Umeå means increased competition. How does Bostaden feel about that?

We welcome Heimstaden. A new housing company establishing itself here can provide opportunities to attract further investment capital into Umeå and it also means there are more of us working to enable Umeå’s continued growth. What is good for Umeå is good for us and for our tenants.

Tell us about Heimstaden!

Heimstaden is a serious property company that takes long-term responsibility and has solid experience of working with tenant properties. Heimstaden is already established in places such as Östersund, Luleå and Skellefteå. You can read more about Heimstaden here: http://www.heimstaden.com/

What impact will this have on the tenants?

Only that they will be getting a new landlord, who has expressed to us that they want to do the best job possible for the tenants. Heimstaden is keen to do things in a proper manner and to create good relationships with the tenants.

Heimstaden is takinjg over as landlord from December 15 2017 and from June 1 2018 they are taking over all aspects of management. Until June 1 2018, we at Bostaden will continue to handle fault reporting and management as before.

Heimstaden will adhere to the common rent-setting system in Umeå, called Poängen, and with regard to rent, Heimstaden will negotiate with the Tenants’ Association, just as we do. They will also take over our agreement on maintenance intervals in the apartments (HLU – Tenant-driven apartment maintenance).

What will happen with my Bostnet internet connection?

You will keep it until further notice.

If I am tenant who does not want to have any landlord other than Bostaden, what do I do?

Make sure you keep your place in our queue by logging in to your personal page at least once a year. You can find (or register for) your personal page on our website www.bostaden.umea.se. You can then search our vacant apartments and the person who has been in the queue the longest is offered the apartment first.

How will this affect rents?

A major player will of course follow the current rules and negotiate with the Tenants’ Association once a year, just as we do.

What will happen to Bostaden’s employees in the affected areas?

They will be given the opportunity to continue working at Bostaden or to transfer to the new owner while retaining their current terms and conditions of employment.

What do the politicians say?

It depends on who you ask of course, but as this sale has been decided by our elected politicians there is broad support for the deal.

Who can I ask if I want to know more?

If you cannot find the answers you are looking for at www.bostaden.umea.se you can contact:

Jerker Eriksson, MD: Telephone 090-17 76 15
Anders Hugosson, Marketing Manager: Telephone 090-17 75 51
Mikael Lundgren, Administration Manager: Telephone 090-17 75 06
Johanna Böström, Area Manager, Mariehem: Telephone 090-17 75 42
Åke Persson, Area Manager, Carlshem: Telephone 090-17 75 72
Madelene Hägg, Customer Centre Manager: Telephone 090-17 77 20

Is there a risk of the tenant properties being converted to tenant-owner properties?

The buyer has no plans other than to own and manage tenant properties in the long term and we therefore consider there to be no risk of them being converted to tenant-owner properties.

Is there a risk of the buyer carrying out luxury renovations and increasing the rent?

There are common long-term rules for all property owners in Umeå. There is therefore no risk of them implementing their own rent setting. Heimstaden has a similar management philosophy to Bostaden and will adhere to the common rent-setting system in Umeå, called Poängen.

What will happen with the maintenance intervals in the apartments – HLU (tenant-driven apartment maintenance)?

HLU will remain and forms part of the deal. Nothing will change for tenants in this respect.

What will happen to the tenants’ personal page and position in the queue?

If you had a rent agreement for apartment with us you will remain in the queue and also get to bring your position in the queue with you to Heimstaden and their queue system. Heimstaden have apartments all over Sweden. All those affected by the change of owners will keep their position in the queue with both Bostaden and Heimstaden Bostads AB. You only need to tell Heimstaden that you want to keep the same position in the queue that you had with Bostaden. To keep your place in the queue with us you have to log in to your personal page at least once a year.

What happens with the priority move service as a loyal customer?

Tenants who have activated the loyal customer service will retain this service even after the change of owners. However, we will no longer be able to offer priority move service at Mariehem and Carlshem.

For those of you who have not lived in your Bostaden apartment for 5 years, and therefore not been able to activate the loyal customer service, will get the possibility to use that service once you have lived in your current apartment for five years. That also applies after the change of owners. To get access to the service you have to contact our Customer Service Centre after you have lived in your current apartment for 5 years. You can activate the service up until December 31, 2022 and the service will then be active until you get a new apartment or get the maximal number of loyal customer offers.