STOCKHOLM – Swedish property group Samhällsbyggnadsbolaget i Norden AB (SBB) has unveiled a strategy aimed at mitigating the challenges posed by its significant debt levels and the current environment of rising interest rates. Central to this strategy is a €600 million ($650.9 million) debt buyback program, which is contingent on the successful completion of a deal with Brookfield Asset Management (TSX:).
The proposed transaction would see Brookfield acquiring a majority interest in SBB’s varied portfolio of public properties, with a particular focus on Nordic education facilities. The sale would provide SBB with a much-needed liquidity boost of 8 billion Swedish kronor ($757.9 million), which it plans to use to facilitate the debt repurchase.
This move by SBB represents a significant step in restructuring its finances and comes as many companies in the real estate sector are grappling with the implications of higher borrowing costs. By selling a substantial part of its asset base to Brookfield, SBB aims to strengthen its balance sheet and improve its financial flexibility during these challenging economic times.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.