Godsfinkan - Stockholm, Sweden
The Challenge In Sweden, a combination of years of rent control, a devastating real estate crisis in the 1990’s and the relative financial attractiveness of condominiums has led to an extreme imbalance between the demand for rental apartments and available supply. Currently, there is an active, decades-long waiting list of more than 300,000 people seeking an apartment in major urban areas.
The Strategy In 2003, responding to a market opportunity, Stellar’s ByggVesta division began developing a strategy to construct and operate rental apartments in a number of Swedish cities. Working closely with officials in Stockholm, Gotebörg, Linköping, and Malmö, ByggVesta identified available land and, with a partner, developed a cost effective, high quality building system that ensured the long-term value of the investment and a high standard of living for residents. This system helped meet the government’s goal of creating more housing for Swedish citizens at affordable rent levels.
The Results Stellar/ByggVesta commenced construction on its first two apartment complexes in 2005 in the Stockholm suburb of Hammarby Sjöstad with 278 units. Since then, Stellar/ByggVesta has constructed more than 1,400 additional units, won Property Developer of the Year four years in a row, and has a pipeline of 3,000 units to develop - a number that is continually growing. At the core of all of the projects’ design plans are sustainable techniques that will enable tenants to conserve energy and resources.