Swedish property group SBB is considering an IPO for its SEK 36.5 bn (€3.1 bn) residential unit, according to reports by both Reuters and Bloomberg.
A well-informed source said that SBB has asked investment bank SEB to explore potential listing options in either the fourth quarter of 2023 or the first half of 2024. The source added that SBB plans to retain a significant stake after the IPO.
Both SBB and SEB declined to comment on the reports.
In its H1 2023 report, published last month, SBB said that its short-term focus is on liquidity to increase flexibility. The company said that it is reviewing all options, including a sale of the company, business segments, or specific assets, as well as other strategic transactions.
In recent months, the group has divested several properties to companies owned by Swedish municipalities and tenants. SBB said that it intends to use the net proceeds to boost liquidity and financial strength.
At the end of July, SBB completed the last step of the sale of a 49% stake in its social infrastructure portfolio for public education to Brookfield, for SEK 9.2 bn (€786.1 mln).
Also last month, SBB sold a minority stake in its SBB Residential Property subsidiary to Morgan Stanley Real Estate Investing. As part of the deal, SBB will issue SEK 2.36 bn (€201.7 mln) of preference shares in its residential subsidiary.
SBB owns residential properties in Sweden and premises for publicly funded social infrastructure in the Nordic region.
