Swedish property group SBB has signed a letter of intent to sell properties to existing tenants for an agreed property value of over SEK 3 bn (€260 mln).
The signing of the binding agreements and closings is planned for Q3 2023.
SBB plans to use the net cash from the transactions to boost its liquidity and financial position.
Leiv Synnes, CEO of SBB, commented: ‘As we commented after our last sales, our relationships with our tenants are of the utmost importance and we are open to dialogues with tenants who want to acquire properties where they themselves are tenants.’
The announcement of the divestment comes as the real estate group announced a widening of its pre-tax loss in Q2 to SEK 11.1 bn (€965 mln).
SBB recently saw its credit rating downgraded to ‘junk’ status and the value of its shares dropped by over 90% from their peak in 2021.
Faced with higher interest rates, falling property prices and tighter bank lending, the Stockholm-based company said it has plans to sell around SEK 6 bn (€521 mln) in assets during 2023.
SBB owns and manages social infrastructure properties in the Nordics and rent regulated residential properties in Sweden and its portfolio was worth SEK 131 bn (€11.4 bn) at the end of June 2023.
