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Swedish real-estate group Samhällsbyggnadsbolaget i Norden AB (SBB) has agreed to sell its social-infrastructure portfolio about 740 properties across Sweden, Norway, Denmark and Finland for 32 billion Swedish crowns (roughly USD 3.40 billion) to Oslo-listed Public Property Invest ASA (PPI). SBB expects to receive net cash of more than 11 billion Swedish crowns and plans to use this to redeem bonds and reduce debt. The transaction is expected to close in late 2025 or early 2026, and will make PPI Europe's largest listed social-infrastructure platform.
Sweden-based SBB recently announced that it will sell its community-property portfolio to PPI in a transaction valuing the assets at 32 billion Swedish crowns (about USD 3.40 billion). The portfolio being divested is held via three wholly-owned subsidiaries, collectively called SocialCo, and includes around 740 properties located in Sweden, Norway, Denmark and Finland. Advertisement
SBB, which owns assets such as hospitals and care homes, is among several European property firms under pressure from high interest-rates and economic headwinds, especially in Sweden. By making this sale, SBB expects to receive more than 11 billion Swedish crowns in net cash proceeds, which it intends to use to redeem or repurchase outstanding bonds and for other purposes. The company said the transaction also is expected to generate annual operating synergies of about 100 million Swedish crowns.
SBB?s Chief Executive Leiv Synnes said that the proceeds from the divestment will enable the company to manage its debt profile more efficiently, strengthen its financial stability, and benefit from a more favourable funding environment.
As part of the deal, Norway's Aker ASA via its vehicle APG Invest AS committed to subscribe for 1.3 billion Norwegian crowns in a private placement, acquire part of the non-voting PPI shares issued to SBB for 4.1 billion Norwegian crowns, and exchange 3.9 million ordinary PPI shares for an equal number of non-voting shares held by SBB.
The transaction is expected to close in the fourth quarter of 2025 or the first quarter of 2026, subject to shareholder and regulatory approvals. Upon completion, PPI will become Europe's largest listed social-infrastructure platform with assets totalling 53 billion Norwegian crowns (roughly USD 5.28 billion).
In background context, SBB has been under considerable financial strain. In March 2024 the company's rating was cut to selective default by Standard & Poor's after it repurchased some bonds at a steep discount, reflecting mounting pressure from high debt and a weak market. One of its strategic responses was to cut costs and sell assets, seen in its earlier move to report a much smaller loss in the fourth quarter of 2024, down from 3.37 billion Swedish crowns a year earlier to 613 million.
The current deal marks a further step in SBB's transformation strategy, wherein it will now focus on distinct segments: education, housing and social infrastructure (via its stake in PPI). SBB will also increase its ownership in PPI to nearly 40 % of shares (about 33.34 % of votes) after the deal. Meanwhile, ratings agency Fitch Ratings upgraded PPI's issuer default rating to BBB+ with a stable outlook, citing the deal's strengthening of PPI's scale and diversification.
Source Reuters
5th Jun, 2025
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