SBB Sells 49% Stake in Property Portfolio to Brookfield For Up To $983 Million
November 30 2022 - 6:22AM
Dow Jones News
By Dominic Chopping
STOCKHOLM--Swedish property company Samhallsbyggnadsbolaget i
Norden AB, or SBB, said Wednesday it will sell a 49% stake in its
Nordic education portfolio to Brookfield Asset Management Inc. for
up to 10.4 billion Swedish kronor ($982.8 million) in cash.
The deal will see SBB's social infrastructure portfolio for
public education, which includes preschools, elementary schools,
upper-secondary schools and universities, transferred into a newly
formed subsidiary called EduCo.
Brookfield will then acquire a 49% stake in EduCo from SBB for
SEK9.2 billion up front, with an additional earnout of up to SEK1.2
billion.
The EduCo portfolio will consist of 585 income-producing assets
spread across the Nordics, generating expected revenue of SEK2.3
billion in 2023 and net operating income of SEK1.9 billion, it
said.
The new company will be operated and managed by SBB, and will
seek to invest in and manage social infrastructure assets within
the public-backed education sector in the Nordics.
"Establishing EduCo will make us even better placed to continue
delivering important infrastructure to the Nordic welfare states,"
SBB Chief Executive Ilija Batljan said. "With Brookfield as our
long-term partner we will also benefit from diversifying SBB
Group's funding sources, whilst we accelerate deleveraging of our
group balance sheet in line with our strategy."
The transaction is expected to be fully completed in the first
or second quarter of 2023.
A letter of intent announced earlier this year related to SBB's
proposed divestment of a SEK9 billion portfolio has been
terminated, it added.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
November 30, 2022 06:07 ET (11:07 GMT)
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