Swedish listed property company SBB has agreed to sell SEK 8 bn (€758 mln) of offices to opportunistic investor Nyfosa.
Nyfosa said it has signed a letter of intent to acquire the assets, which are mainly offices in Sweden, and that it expects to enter into binding agreements on the portfolios in March 2020.
SBB is divesting non-core assets as it goes through the final stages of a SEK 23.5 bn (€2.2 bn) cash and shares takeover of rival Hemfosa. The takeover is designed to create the leading Nordic investor in residential and social infrastructure properties such as care homes and schools.
Adding Hemfosa’s assets takes SBB’s combined portfolio to SEK 70 bn, meaning SBB will also become the fourth-largest listed Nordic property company, behind Balder, Castellum and Fabege.
SBB said it has further negotiations underway to sell another SEK3 bn of property and that all the sales are expected to be at a circa 15% premium to last valuation.
‘With these sales we are preparing SBB for a BBB+ rating’ said Lars Thagesson, SBB deputy CEO. The sales proceeds will also be used to pay down bank debt.
The Hemfosa acquisition gives Swedish-focused SBB a wider spread in the Nordic region as Hemfosa owns a substantial portfolio in Norway.
Nyfosa’s commercial portfolio was valued at SEK 18.3 bn as at 30 September 2019.
