Nordic student house developer Studentbostäder i Norden (SBS) has signed a non-binding letter of intent for the sale of a SEK 2.1 bn (€182 mln) property portfolio.
The portfolio in Copenhagen (Denmark) includes a property that the company has not yet taken possession of and is not included in its accounts.
The financial effects of a transfer on these terms will represent a loss of around SEK 170 mln (€15 mln), based on the assets' book value as of 30 June 2023.
The company is considering the transaction in order to strengthen its liquidity and financial position.
An institutional investor will take possession of the portfolio in two stages.
The first must be carried out shortly after the share transfer agreement has been entered into and the second when the contract has been completed, subject to certain conditions.
The letter of intent implies exclusivity for the institutional investor to negotiate with SBS on the conditions for transfers of the properties but does not imply any obligation for any party to carry out the transactions.
If the parties fail to agree on the terms of the transfer agreements, both parties can, at any time by notification to the other party, withdraw from the deal without any liability to the other party.
Catella advised SBS during the process.
