Hines Agrees to Acquire 197-Home Konduktören Build-to-Rent Project From Magnolia Bostad in Stockholm
Hines has agreed to acquire Konduktören, a 197-home build-to-rent development in Veddesta, Stockholm, through a forward-funding agreement with developer Magnolia Bostad, the firm announced Oct. 6. The acquisition will be made through the Hines European Property Partners (HEPP) fund.
Hines and Magnolia Bostad Deal Details
Magnolia Bostad is developing the nine-storey project, which will comprise more than 9,000 square metres of residential space and more than 200 square metres of ground-floor commercial space. The residential area is approximately 9,200 square metres, or about 99,000 square feet. Completion is expected in the first quarter of 2029.
Konduktören sits in Veddesta, within the Järfälla municipality of Greater Stockholm. Under a forward-funding structure, the investor agrees to acquire the asset and funds construction before completion, giving the developer financing certainty during delivery.
Based on the reported project totals, the average residential area works out to roughly 46.7 square metres per apartment, or about 503 square feet. That figure is an arithmetic average and does not reflect a unit mix.
Second Residential Transaction With Magnolia Bostad
The transaction is Hines' second residential collaboration with Magnolia Bostad. In April 2025, Hines announced a 310-home development in Kista, acquired through the Hines European Core Fund (HECF). That deal was the firm's first residential acquisition in Sweden. Together, the two Magnolia Bostad projects represent 507 planned rental homes in the Stockholm region.
The two transactions use different Hines vehicles: HECF for Kista and HEPP for Konduktören. Hines said Konduktören adds further momentum to its expanding living platform and substantial residential pipeline across Sweden.
Veddesta Location and Metro Connection
Konduktören is located directly opposite a planned metro entrance scheduled to open by the end of 2028, which would improve connectivity to central Stockholm. The entrance is expected to open ahead of the apartments' targeted completion.
The project is part of the wider Barkarby urban development area in Järfälla municipality, northwest of central Stockholm. The municipality intends the area to bring new housing, commercial space, community amenities and public transport connections.
Stockholm Rental Market Context
New-apartment construction in Sweden's largest metropolitan areas showed signs of recovery in 2025. Construction starts for multi-dwelling buildings across Greater Stockholm, Greater Gothenburg and Greater Malmö totaled approximately 2,600 apartments in the third quarter of 2025, up 45% from a year earlier, according to Cushman & Wakefield's Sweden residential market report. Swedish residential development had previously been constrained by higher financing costs, weaker transaction activity and elevated construction expenses.
Regulated rents in Stockholm rose to approximately SEK 2,950 per square metre, compared with SEK 2,450 in Gothenburg and SEK 2,300 in Malmö, Cushman & Wakefield reported. Sweden's regulated-rent framework means returns on rental housing depend on factors including location, operating efficiency, construction cost and the timing of rent increases.
Outlook
Because Konduktören will not complete until 2029, Hines is taking on a multi-year development and lease-up period rather than acquiring in-place income. Key execution factors include delivery timing, construction costs, interest rates and the opening of the planned metro entrance. For Hines, the project builds on its Swedish residential platform alongside Magnolia Bostad, with exposure to a Greater Stockholm submarket slated for new housing and transit investment.
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