Samhällsbyggnadsbolaget i Norden AB (SBB) has agreed to form a joint venture named SBB Infrastructure AB (SBB Infrastructure) with funds managed by global alternative investment manager Castlelake, LP (Castlelake). As a part of this joint venture, SBB Infrastructure has signed a loan agreement worth c. €462.8m with Castlelake, with support from Atlas SP Partners (Atlas). The loan proceeds will be used by SBB Infrastructure to purchase properties from SBB, as well as to refinance SBB's existing debt. This transaction marks the establishment of a joint venture between SBB Infrastructure and Castlelake.
SBB Infrastructure acquires the properties at the market value as of 31 December 2023, amounting to c, €507.3m. SBB Infrastructure will receive collateral from SBB in the form of properties valued at €329.3m as additional collateral to provide security for the loan, making the total pool of collateral used for the loan €836.6m. The community portfolio will be operated and managed by SBB Infrastructure through a management agreement with SBB.
SBB will use the proceeds from the Transaction to strengthen its financial position and amortise debt.
“The Transaction confirms the strong value of SBB’s community portfolio, which distinguishes itself through growing demand, inflation-proof cash flows and low risk of rental losses. The cash proceeds provide the opportunity to refinance debt and execute strategic measures to maximise value for the group over time. We look forward to the partnership with Castlelake", said Leiv Synnes, CEO of SBB.
The Transaction is subject to customary closing conditions. The Transaction is not subject to competition clearance. Closing will occur as soon as all closing conditions have been fulfilled, which is expected to occur in March 2024.
J.P. Morgan, Vinge, Wistrand, and Waselius Wist advised SBB, DLA and CBRE advised Castlelake and CWT and Roschier advised Atlas.
Image source - Pexels
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