Allianz and Heimstaden Bostad Expand Partnership

14 Nov 2022 21:00 CET

Allianz Real Estate, on behalf of Allianz companies (Allianz), and Heimstaden
Bostad inject SEK 7,000 million (EUR 650 million) in new equity in their
existing Swedish joint venture, using the proceeds to repay debt.
Simultaneously, Allianz and Heimstaden Bostad form a new joint venture
comprising Allianz's German residential real estate portfolio.

Commenting on the Transaction:

"After a successful cooperation in the first year in Sweden, we are very pleased
to further expand our partnership with Heimstaden Bostad into Germany. With two
experienced, likeminded partners working together, we are well positioned to
deliver the ESG improvements needed to meet our decarbonization targets," says
Nicole Pötsch, Head of Investments & Strategic Development for North & Central
Europe, Allianz Real Estate.

"We are happy to join forces once again with Allianz, a partner who matches our
ambitions and commitment to responsible and sustainable housing. Together we
create a strong voice in the residential real estate sector, and we look forward
to working with Allianz Real Estate in strengthening our German footprint,
adding new, strategically important locations to our portfolio. Following the
transaction, Allianz becomes our third largest institutional partner with more
than SEK 15 billion (approx. EUR 1.4 billion) invested with us," says Christian
Fladeland, Chief Investment Officer at Heimstaden.

Equity Issue in Swedish Joint Venture

In December 2022, Heimstaden Bostad and Allianz's joint venture, Heimstaden
Eagle AB will issue SEK 7,000 million in new equity to repay debt to Heimstaden
Bostad, where Allianz will provide SEK 3,938 million (EUR 365 million) and
Heimstaden Bostad will provide SEK 3,062 million (EUR 285 million). Accordingly,
the net cash effect for Heimstaden Bostad is SEK 3,938 million (EUR 365
million).

Formation of German Joint Venture

Heimstaden Bostad and Allianz form a new joint venture through Heimstaden
Bostad's cash investment of EUR 262 million (SEK 2,815 million) in Allianz's
German residential real estate portfolio. The new joint venture will own 38
properties with 3,135 homes located in Düsseldorf, Greater Munich, Cologne,
Bonn, Berlin, and Stuttgart with a current occupancy of 97%. The joint venture
adopts Heimstaden Bostad's sustainability programme and has committed EUR 84
million to ESG improvements, mainly focused on energy optimization with the goal
of reducing greenhouse emission in line with the Paris Agreement.

The transaction is conditional upon merger clearance by the German Federal
Cartel Office and is expected to be completed in December 2022.

Structure and Financing

The new joint venture will be funded with equity, including Heimstaden's EUR 262
million investments as well as external debt financing targeted at 30% LTV to be
obtained during 2023.

Joint Venture Ownership Structure

Capital share, % Votes, %
Heimstaden Bostad 43.75% 50.5%
Allianz 56.25% 49.5%

Heimstaden Bostad was advised by Greenberg Traurig, DLA Piper, Sweco and PwC.

This information is such that Heimstaden Bostad AB (publ) is required to publish
in accordance with the EU Market Abuse Regulation. The information was
submitted, through the agency of the above contact persons, for publication on
14 November 2022 at 21:00 CET.

Media enquiries:

Heimstaden Bostad
Christian V. Dreyer, CCO
+47 907 24 999
christian.dreyer@heimstaden.com

Allianz Real Estate
Phillip Lee
+49 89 3800 8234 / +49 151 1177 3855
phillip.lee@allianz.com

Citigate Dewe Rogerson (UK)
Camilla Wyatt / Olivia Morton-Reece / Hugh Fasken
AllCDRUKAllianzRealEstate@citigatedewerogerson.com

About Heimstaden Bostad
Heimstaden Bostad is a leading European residential real estate company with
around 154,000 homes across 9 countries with a property value of SEK 337
billion. We acquire, develop, and manage properties with an evergreen
perspective. Guided by our Scandinavian heritage and values Care, Dare and Share
- our 2,200 colleagues fulfil our mission to enrich and simplify our customers'
lives through Friendly Homes. Read more at  www.heimstadenbostad.com.

About Allianz Real Estate and PIMCO
Allianz Real Estate is a PIMCO Company, comprising Allianz Real Estate GmbH and
Allianz Real Estate of America and their subsidiaries and affiliates. It is one
of the world's largest real estate investment managers, developing and executing
tailored portfolio and investment strategies globally on behalf of a range of
global liability driven investors, creating long-term value for clients through
direct as well as indirect investments and real estate financing. The
operational management of investments and assets is performed out of 17 offices
in key gateway cities across 4 regions (West Europe, North & Central Europe, USA
and Asia Pacific). For more information, please visit: www.allianz
-realestate.com. PIMCO is one of the world's premier fixed income investment
managers. With its launch in 1971 in Newport Beach, California, PIMCO introduced
investors to a total return approach to fixed income investing. In the nearly 50
years since, the firm continued to bring innovation and expertise to our
partnership with clients seeking the best investment solutions. PIMCO has
offices around the world and 3,000+ professionals committed to delivering
superior investment returns, solutions and service to its clients. PIMCO is
owned by Allianz SE, a leading global diversified financial services provider.

Source: Allianz Real Estate, data as at 30th September 2022.

These assessments are, as always, subject to the disclaimer provided below.

Important Information
Some of the statements in this press release may be forward-looking statements
or statements of future expectations based on currently available information.
Such statements are naturally subject to risks and uncertainties. Factors such
as the development of general economic conditions, future market conditions,
unusual catastrophic loss events, changes in the capital markets and other
circumstances may cause the actual events or results to be materially different
from those anticipated by such statements. Allianz Real Estate does not make any
representation or warranty, express or implied, as to the accuracy, completeness
or updated status of such statements. Therefore, in no case whatsoever will
Allianz Real Estate be liable to anyone for any decision made or action taken in
conjunction with the information and/or statements in this press release or for
any related damages. Any views expressed were held at the time of preparation
and are subject to change without notice. While any forecast, projection or
target where provided is indicative only and not guaranteed in any way. Allianz
Real Estate accepts no liability for any failure to meet such forecast,
projection or target. This document is not intended for distribution to or use
by any person or entity in any jurisdiction or country where such distribution
or use would be contrary to law or regulation. This document is not and should
not be construed as an offer to sell or the solicitation of an offer to purchase
or subscribe to any investment. This document is not intended as investment
advice, or an offer or solicitation for the purchase or sale of any financial
instrument, or an offer or recommendation related to Allianz Real Estate and/or
its products. None of the information or analyses presented herein are intended
to form the basis for any investment decision, and no specific recommendations
are intended. PIMCO is a trademark of Allianz Asset Management of America L.P.
in the United States and throughout the world.  ©2022, PIMCO.

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