EQT Real Estate has committed nearly €150m to a major residential development in Stockholm, marking its latest investment in sustainable living strategies across Europe.

The transaction was completed through the EQT Real Estate II fund via a forward funding agreement for the second phase of a large-scale build-to-rent project in Flemingsberg, one of Stockholm’s fastest-growing districts.

The project is being delivered in partnership with Swedish urban development specialist ByggVesta and will bring a total of 805 modern rental homes to market. These will primarily serve young professionals, researchers, and students, addressing long-standing housing shortages in the Swedish capital.

The second phase of the development, comprising 388 units, follows EQT’s acquisition of the first phase in June 2024, which includes 417 homes currently under construction. Completion of both phases is expected in 2026 and 2027.

Located adjacent to the Karolinska Institute and Södertörn University, the site offers direct access to a major transit hub, connecting residents to central Stockholm in under 20 minutes. The neighbourhood is also the future site of the Stockholm South Business District, which is projected to draw 50,000 workers, residents, and visitors by 2050.

The buildings will meet Sweden’s Miljöbyggnad Silver ESG certification, with sustainability features including solar panels, climate-compensated concrete, and community social spaces.

“Our goal is to create homes that are thoughtfully designed, energy-efficient, and accessible to the people who live and work in this dynamic part of Stockholm,” said Erik Körner, Investment Director at EQT Real Estate.

Tom Livelli, Partner and Head of Living Strategies, Europe, added: “This project reflects our continued commitment to addressing Europe’s housing challenges through long-term investment in high-quality, sustainable living environments.” Meet and hear more from EQT by joining Italy’s Largest Private Equity Conference in Milan. 

Source: EQT