The Face of Sweden’s Property Bust Fights for $13 Billion Empire
Ilija Batljan’s struggles illustrate the risk of debt-fueled real estate expansion
Sweden’s residential market is at the leading edge of the the region’s unfolding real estate crisis.
Photographer: Mikael Sjoberg/BloombergThis article is for subscribers only.
A Yugoslav war refugee turned Swedish property tycoon is fast running out of options to stabilize his $13 billion empire, and the outcome will have ripple effects across Europe’s real estate industry.
Ilija Batljan started amassing a portfolio of more than 2,000 properties in 2016, buying up social housing and municipal buildings from cash-strapped authorities and leasing them back. The idea was to combine steady growth with stable returns provided by reliable, long-term tenants — but the reality was an appetite for debt that was too much for the Swedish market.