Akelius

Akelius owns more than 47,000 apartment units across Sweden, Germany, Canada, England and France. The company first purchased its first buildings in Toronto in 2011 and they now own approximately 3,500 units, according to their 2019 annual report. For the first quarter of 2020, while Toronto is deep in a housing and homelessness crisis, Akelius held 322 units vacant in the city, the majority for renovations and “upgrades” in order to maximize rent.

Akelius is a multinational property corporation. While initially founded in Sweden, the company has an opaque and convoluted ownership structure with bases in Cyprus and the Bahamas. It is largely controlled by the Akelius Foundation, a charity based in the Bahamas, where founder Roger Akelius lived for many years until Hurricane Dorian destroyed his house and boats.

Akelius’ business model is to buy primarily C-class buildings (meaning buildings that are usually more than 20 years old and require extensive renovations). After purchasing a building, they will immediately do capital modifications. They will install new boilers to decrease their operating expenses, replace balconies to boost curb appeal, or “upgrade hallways and lobbies.” For Akelius, it only makes sense to do repairs inside the units “when tenants move out.”

According to their website: “Roger Akelius has donated 90 per cent of Akelius Residential Property AB to Akelius Foundation. The foundation is registered in Bahamas and its purpose is charity.” More accurately, Akelius is 85% controlled by the Akelius Foundation (based in the Bahamas), 5% owned by the Grandfather Roger Foundation (the Bahamas), and the final 10% by the cryptic Hugo Research Foundation (based in Cyprus), which is listed in the International Consortium of Investigative Journalists’ offshore leaks database. Bahamain foundations are often used by foreign companies as estate management and inheritance planning tools to preserve wealth. They offer high levels of confidentiality, paying out to “beneficiaries” that do not need to be named. Akelius still manages to earn hundreds of millions of euros a year despite their “non-profit” status. If they truly operated for the greater good, they might be a bit kinder to the tenants who live in their buildings. Furthermore, according to the most recent annual report Akelius recorded average returns of 11.5% over the past seven years, which is a pretty tidy profit for a non-profit foundation.

Roger Akelius, Founder

Prior to founding Akelius in 1994, Roger Akelius was a writer of technical manuals, including a book on tax avoidance that explained “in a simple and personal way how ordinary people could legally reduce their taxes.”

Roger Akelius on the beach outside his former home in the Bahamas.

Roger Akelius on the beach outside his former home in the Bahamas.

Roger owns almost $14 billion in real estate around the world. He currently lives in Cyprus after his home and “boats and other vehicles were completely destroyed” in the Bahamas by Hurricane Dorian in 2019. In response, he told Expressen, a national Swedish newspaper, “No problem. I have lost a living, but I have fifty thousand apartments left,” availing himself of his global rental apartment empire.

Roger likes to share his vast wealth. In 2015 for his 70th birthday, Roger committed to raising the salary of 475 Akelius employees by 20%. But while he was doing this, tenants at 188 Jameson in Parkdale faced back-to-back above guideline rent increases – a 4.1% increase in 2014 followed by a 4.6% increase in 2015. Tenants who spoke to the Toronto Star commented on the stress caused by these rent increases: “The amount they want to increase, it’s just too much,” says Namgyal Lhamo, 39, a personal support worker who lives in a one-bedroom apartment with her three-year-old daughter and her cousin.”

So I’m a super capitalist. The more the market decides the better it gets.
— Roger Akelius, speaking to SVT, Sweden’s national broadcaster, in the documentary “An Ordinary Billionaire”
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Roger Akelius in 1980, when he was a bond expert at the Swedish National Debt Office.

Shelly Lee, Head of North America

Shelly Lee, Head of North America for Akelius, former Head of Canada from 2015–2017

Shelly Lee, Head of North America for Akelius, former Head of Canada from 2015–2017

Shelly Lee is now the Head of North America for Akelius, after serving as Head of Canada from 2015–2017. Educated at the University of Waterloo, Lee has been the public face of Akelius responding to recent criticism from the United Nations’ Leilani Farha who called out Akelius’ “aggressive business model” which “driven by the desire to maximise profits, has created a hostile environment for its tenants through a severe degradation of housing conditions, higher rents and increased risk or threat of eviction.”

Lee responded by denying this statement: “She says that she has ‘heard of cases.’ She obviously has no proof, only hearsay. We are surprised by this and disappointed.”

Despite well-documented accounts, Lee insisted that, “All those allegations were unfounded — there were no facts, or evidence. We were very disappointed.”

Lee is clear about Akelius’ strategy of purchasing C-level buildings that are older and need work, then undertaking common area renovations to drastically raise rents through Above Guideline Increases, and waiting until tenants move repair units to take advantage of vacancy decontrol: “Our buildings are quite old, need a lot of care, a lot of remodelling, which fits our model perfectly.”

Jordan Milewicz, Head of Europe, former Head of Canada (2011–2014)

Born in 1982 and currently Head of Europe for Akelius, Jordan Milewicz has been with Akelius since 2008 when he started as an Asset Manager in Munich and soon became Head of Southern Germany. In 2011 he moved to Canada to work for the development of Akelius' operations in Toronto and Montreal. In 2015 Jordan became Head of US. In 2016 he moved back to Berlin as Head of Property and Business Department.

Jordan recognizes how Akelius profits from strategically managing shelter—a basic human necessity. He told Rental Housing Business magazine, “We have a responsibility to deliver basic human needs to our customers.”

Jordan Milewicz from a feature in the April 2014 issue of Rental Housing Business, while he was president of Akelius Canada Ltd.

Jordan Milewicz from a feature in the April 2014 issue of Rental Housing Business, while he was president of Akelius Canada Ltd.

“We’ll upgrade units when tenants move out, and ensure a condo quality experience when new tenants move in.”

— Jordan Milewicz

Buildings Owned by Akelius

  • 143 Arlington Avenue

  • 145 Arlington Avenue

  • 755 Avenue Road

  • 26 Balmoral Avenue

  • 28 Balmoral Avenue

  • 12 Bater Avenue

  • 1510 Bathurst Street

  • 2400 Bathurst Street

  • 36 Castle Frank Road

  • 1 Claude Avenue

  • 612 Dawes Road

  • 150 The Donway West

  • 122 Dowling Avenue

  • 25 Eccleston Drive

  • 55 Eccleston Drive

  • 56 Eccleston Drive

  • 365 Eglinton Avenue East

  • 551 Eglinton Avenue East

  • 150 Fermanagh Avenue

  • 50 Gloucester Street

  • 55 Hendrick Avenue

  • 160 Huron Street

  • 109 Indian Road

  • 81 Isabella Street

  • 83 Isabella Street

  • 95 Jameson Avenue

  • 188 Jameson Avenue

  • 190 Jameson Avenue

  • 501 Kingston Road

  • 1420 Kingston Road

  • 111 Lawton Boulevard

  • 54 Maitland Street

  • 56 Maitland Street

  • 457 Marlee Avenue

  • 28 Maynard Avenue

  • 1001 O'Connor Drive

  • 230 Oak Street

  • 110 Oriole Parkway

  • 240 Oriole Parkway

  • 4 Overland Drive

  • 3008 Queen Street East

  • 3010 Queen Street East

  • 798 Richmond Street West

  • 800 Richmond Street West

  • 39 Riverwood Parkway

  • 47 Riverwood Parkway

  • 49 Riverwood Parkway

  • 118 Roncesvalles Avenue

  • 263 Russell Hill Road

  • 265 Russell Hill Road

  • 77 Spencer Avenue

  • 49 St. Clair Avenue West

  • 730 St. Clarens Avenue

  • 16 St. Joseph Street

  • 99 Tyndall Avenue

  • 100 Vaughan Road

  • 227 Vaughan Road

  • 110 Wellesley Street East

  • 2875 Yonge Street

Financial Information

Akelius bought over $274 million CAD worth of new property around the world in 2019.

Akelius is “Sweden’s largest multi-residential landlord.” All its properties are large buildings and mostly owned through the Akelius Foundation, a charity registered in the Bahamas.

According to their 2019 annual report, they “cherry pick” buildings in what they call “improving areas,” meaning working class neighbourhoods that are in close proximity to more expensive ones. They recognize and capitalize on the pressures faced by tenants who struggle to find housing in Toronto, noting that “regardless of their work situation, people need somewhere to live.” Akelius’ goal is to drive up both rents and property values in the neighbourhoods they invest in, stating “growth in revenue [rents] leads to higher property values” and vice versa. What’s more, is they are specifically interested in targeting “young professionals,” who are seeking “dense, diverse and interesting cities.” In short, bring “young professionals” into “diverse” neighbourhoods in “improving areas” and then drive up rents and property values.

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Akelius owns close to $14 billion of real estate around the world.

In The News

UN accuses Toronto apartment owner of human rights abuses

"These renovations are a vehicle for Akelius to charge substantially increased rents to both new and existing tenants, enabling it to circumvent vital rent-control regulations which commonly allow for above-control rent increases where modernization works are undertaken.

She said in 2014,  Akelius' applications for above-guideline rent increases made up about 10 per cent of all applications Canada-wide.”

Tenants work together, receive compensation after superintendents removed

A corporate landlord has agreed to pay $50,000 to a group of Parkdale tenants who accused the company of neglecting their apartments.

Last year, 35 tenants filed joint applications with the Landlord and Tenant Board alleging that their landlord, Akelius Canada Ltd., had reduced their services and substantially interfered with the enjoyment of their properties by removing on-site superintendents and replacing them with a tenant hotline.

Akelius, which is the Canadian arm of a Swedish property giant, has been accused by some tenants of stalling on repairs as part of a strategy to force out lower-income residents, renovate the vacated units and drastically increase the rents.

Toronto company responds to fuel spill leaking into Don River, cleanup begins

“A Toronto real estate company is responding after a Global News report exposed a petroleum spill in the Don River that is suspected to be flowing from a nearby contaminated property.

A spokesman for Akelius Real Estate Management, the company that owns a nearby “brownfield” property, said they were informed of the spill near the Gerrard Street overpass by the Ministry of Environment and Climate Change Wednesday night.”

New rent monster

Tenants all over the city tell the same story: the company moves in, embarks on major upgrades to some parts of the building but neglects basic repairs in their units. Superintendents who live on site are replaced by a phone number that's little more than a black hole for residents' complaints.

Soon enough people start moving out, and Akelius renovates their vacated units to rent them out at a higher price.

Already the company has converted nearly a fifth of its apartments into what it calls "Akelius First Class" dwellings. The strategy is profitable: at the end of 2013, those signing new leases in Akelius buildings paid 39 per cent more than the company's average rent at the beginning of the year.

Parkdale tenants battle back-to-back rent increases

Tenants of a Parkdale apartment complex are staging a protest to fight back-to-back rent increases being sought by their landlord.

Property manager Akelius Canada applied to increase the rent at 188 Jameson Ave. by 4.1 per cent in 2014; this year it doubled down, seeking a 4.6 per cent hike. At least 50 residents of the midrise apartment building, including many Tibetan refugees, say they can’t afford to pay that much and are planning to protest outside Akelius’ Toronto head office Monday.

“The amount they want to increase, it’s just too much,” says Namgyal Lhamo, 39, a personal support worker who lives in a one-bedroom apartment with her three-year-old daughter and her cousin.

Parkdale tenants accuse firm of ignoring repairs in bid to push them out

At 188 Jameson Ave., a 54-year-old grey-brick, eight-storey building, 12 of the 47 apartments have been transformed into what Akelius calls “first-class” units. Photos show polished wooden floors, stainless steel kitchen sinks and bright porcelain bathroom amenities. A bachelor suite goes for about $1,100 a month, while a one-bedroom can cost up to $1,500.

It’s more than what most of the long-time tenants, who live in the other 35, less glamorous units, can pay. These tenants are primarily Tibetan, some with poor English skills. A few are elderly, others are students with part-time jobs.

Parkdale vs. Akelius

May 20, 2014 - Tenants from three buildings in Parkdale owned by Akelius march on their landlord's property management office and force a meeting with Akeliu...
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Tyndall Avenue Tenants Push Back

November 25, 2015 – By a member of the 99 Tyndall building committee
On October 13th, my neighbours and I at 99 Tyndall Avenue were facing unwelcome intrusions of our homes by our landlord, Akelius, under the guise of so-called “inspections for cleanliness.” Significantly enough, those of us being targeted by Akelius are longer- term tenants with desirable two bedroom units and/or desirable views of the lake. Clearly, Akelius was up to their usual tricks of intimidation and harassment attempting to lay the tracks down for subsequently evict- ing us longer-term tenants and jacking the rent on our units for a tidy pro t. Those of us being targeted could very well find ourselves forced out of our homes and looking at un- affordable rents elsewhere in the neighbourhood. Fortunately, our neighbours at 99 Tyndall as well as other nearby buildings chose to come to our aid, organizing a rally to meet the Akelius people face to face in the lobby of 99 Tyndall as they came to do their so-called “cleanliness inspections.” The Akelius people were very much surprised by the large turn- out of concerned tenants from 99 Tyndall and other Parkdale properties. They realized that intimidation and harassment would no longer be tolerated by rent paying tenants. Neighbours would help neighbours. The community was visible and had to be reckoned with. As a direct result of our organizing and coming together for mutual protection, the Akelius minions reluctantly agreed to provide in writing what exactly they meant by “cleanliness” before any such invasive inspections would occur and that Akelius would pay to remedy any deciencies found. More importantly, Akelius agreed not to use these inspections as grounds for eviction. Wisely enough, these important promises from Akelius were recorded by those present using cameras and cell phones. Akelius realized that they could not simply ignore Parkdale tenants and that they would be held accountable for the promises that they made that day in the light of social media. Our action on October 13 was possible because of our organizing over the past two years since Akelius bought our building. If you live in a building in Parkdale, and you’re reading this, consider talking to your neighbours about getting organized and forming a building committee. Get in touch with Parkdale: Organize! if you need some help getting started.

Where do rent payments to Akelius actually end up?

A cartoon from Stop Akelius Berlin! from April 2020

 

Share your Akelius stories with us.

Tenants across the city are organizing together against rent increases, disrepair and disrespect. Tell us about your experiences as an Akelius tenant and join your neighbours.

 

Tenants of Akelius ⁠—

Organize with your neighbours

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