Akelius Residential halts renovation strategy after UN scandal
Akelius Residential halts renovation strategy after UN scandal
It
plans to cut construction staff by 400 by the end of 2022 and focus on new builds,
as well as upgraded properties.
It
commented that the good times for upgrading properties that require extensive
renovations are over.
Akelius
still targeted doubling its portfolio of properties over the course of the next
decade. The Sweden-based company manages a total of 44,000 rental apartments.
In
May the UN accused the firm of breaching the international human rights of its
tenants by having them live in poor conditions, aggressively increasing rents
and threatening evictions. In countries with rent controls the company was
accused of renovating properties with the end goal of hiking rents.
The
UN communication was sent to the governments of Canada, Germany and the UK.
Since
Akelius pledged to change its strategy in August, a tenant living in an Akelius
building in Kilburn, London, said that – from his first hand experience – it
appears to have shifted its practices, which he reckons is because of the UN
statement.
Previously
the tenant described his building as a construction site, but now he said the
company is only doing light refurbishment, like painting and aesthetic
touch-ups.
However
he is still critical of the firm when it comes to managing issues related to
maintenance, as well as responding to emails from other tenants.
Shortly
after the UN made its concerns public the company’s chief executive Pål Ahlsén
resigned.
In
June the UK government stated that the firm is under investigation by the
Property Ombudsman.
In
the same month tenants who lived in Akelius buildings joined forces to issue a
lengthy statement on the subject.
What
they said included: “We reaffirm the criticism of the Akelius business model
and business practice, voiced by the UN.
“We
are calling to those in power – to governments, to politicians, and to
lawmakers – TO PUT A STOP TO THIS (sic). We are calling to businesses, to
companies, and to contractors, to stop providing goods and services to Akelius,
and to investors, to reconsider Akelius, until they respect the Human Right to
Housing.”
PropertyWire
reached out to Akelius Residential for comment.
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