Samhällsbyggnadsbolaget i Norden (SBB) is selling a portfolio of six social infrastructure properties in Sweden and Finland to its associated company Public Property Invest (PPI) for SEK1.35bn (€119m) in a cash and share deal.
The deal comprises net consideration of SEK250m in cash and SEK1.01bn through the issuance of 39.5m new shares in PPI, increasing SBB’s stake in the Norwegian-listed firm from 41% to 43%.
The Swedish listed property firm said the transaction is being executed at a discount of approximately 3%.
The 63,400sqm portfolio includes a newly built elderly care home in Stockholm, a renovated police station outside central Helsinki, an ongoing development project in Karlskrona let to SAAB and two additional municipal-let assets in Karlskrona.
Andreas Morfiadakis, CEO of SBB, said: “The Transaction is a good example of the transition SBB has undergone in recent years. We have progressively developed and worked with our remaining investment and project properties, with the aim of subsequently divesting them to property management organisations.
“In this case, the transaction is carried out with one of our associated companies, meaning that we will continue to participate in the value creation in the portfolio.
“We are releasing capital and increasing our financial flexibility, while the share consideration gives us continued exposure to social infrastructure and creates better conditions for SBB’s continued development and long-term value creation.”
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