Sweden’s commercial landlords continue to divest properties as they seek to lighten heavy debt loads built in the era of cheap money.
(Bloomberg) — Sweden’s commercial landlords continue to divest properties as they seek to lighten heavy debt loads built in the era of cheap money.
On Tuesday, Samhallsbyggnadsbolaget i Norden AB and Castellum AB separately announced transactions worth 191 million kronor ($17 million) and 430 million kronor, respectively. SBB said the sale of buildings to Nykvarn Municipality was part of its previously announced package to offload 3 billion kronor of assets to existing tenants.
“The ambition is to do even more deals with municipalities to strengthen the company’s financial position,” SBB Chief Executive Officer Leiv Synnes said in a statement.
The Stockholm-based company has so far raised about half of the 8 billion kronor it says it needs to plug a funding gap over the next 12 months. The landlord is also considering a carve-out of its entire residential business in an effort to raise cash, Bloomberg News reported earlier this month.
SBB shares rose as much as 2.7% as of 9:06 a.m. in Stockholm, with Castellum retreating as much as 2.9%.
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