Magnolia Bostad is selling four projects located in Huddinge, Nacka, Sollentuna and Helsingborg to the JV. The project in Huddinge comprises around 1 800 residential units and the sale is conditional on a zoning plan coming into force, which is expected to be in 2023. The other three projects have zoning plans in force and comprises together around 500 residential units that are expected to be completed in 2023. The project acquired from SBB is located in Norrköping. The ambition with the JV is to expand it through more acquisitions over time. Changes in the value of the JV that affect earnings will arise as the projects are market valued.

Magnolia Bostad is also selling two residential care projects located in Östersund and Nacka to SBB. Both properties have zoning plans in force. The sale of the project in Nacka is conditional on a turnkey contract being signed. The estimated property value of the projects upon completion is around SEK 470 million. The properties are valued at fair value, and therefore there is no positive effect on earnings from the sale.

Magnolia Bostad will be responsible for the project management of all the projects in both the JV and the sold residential care homes until the properties are completed.

“It’s very positive that we are deepening our collaboration with SBB as long-term partners. With this JV, we are taking a step forward in our development of properties for self-management,” says Fredrik Lidjan, CEO of Magnolia Bostad.

Wigge & Partners has acted as legal adviser to Magnolia Bostad and Wistrand Advokatbyrå has acted as legal adviser to SBB. Bernström & Partners has been the transaction adviser in the deal.