Shares of Scandinavian commercial real estate giant SBB Norden (SBBB.SE) are up almost 24% today after the heavily indebted company reported net profit for Q1 2025 and its management issued a positive statement regarding its agreement with Norway’s Aker.
- Leiv Synnes, the company’s CEO, welcomed the deal under which Norway’s Aker Property Group (a subsidiary of Aker) will become the new main shareholder in SBB and its affiliated companies, acquiring a 9.08% stake. In addition to gaining a new lead investor, the agreement improves the company’s loan-to-value ratio and strengthens the outlook for future cash flows.
- The market interpreted the deal as a major shift in the company’s valuation and risk profile. SBB is still actively seeking new investors as several debt maturities approach. Aker also agreed to purchase a stake in Public Property Invest AS (PPI), another real estate company in which SBB holds a majority interest.
- SBB will issue 164 million class B shares to Aker Property Group at a price of SEK 4.25 per share. Aker will become SBB’s largest shareholder, and the issuance is expected to bring the loan-to-value ratio below 60%. The CEO also noted that the likelihood of PPI paying a dividend has increased, which should support SBB’s cash flow as it will now hold a larger stake in the Norwegian group.
SBB also announced the creation of two subsidiaries for its community property portfolio: SBB Samhälle and SBB Utveckling. Utveckling will focus on development projects, while Samhälle will manage cash-flow-generating properties.
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Source: xStation5
