In Q3 2017, SSM entered into a financial joint venture agreement with Partners Group, acting on behalf of its clients, for the Järla Station, Metronomen and Tellus Towers projects. The partnership was initiated to secure financing to run the project and it was based on an implementation period of five years from the date the agreement was made.  

The Metronomen project at Telefonplan, which features 188 cooperative apartments, is nearing completion and finalization of the city plan for the Järla Station project, which includes an estimated 159 building rights, has been postponed. As a result of SSM’s improved financial stability and the status of the projects, SSM has chosen to buy back the projects and manage them in their entirety until they are finished.

The Tellus Towers project will remain within the joint venture with Partners Group; however, the intention is to find another ownership structure for this project as well during 2021, which means that the joint venture with Partners Group will then be dissolved.

"Urban development is characterized by long lead-times with intrinsic uncertainty, which isn’t always in line with the investment horizon in the funds of global investment managers. Today, SSM has a better financial position and a strong ownership base, giving the company more opportunities to develop projects under its own auspices going forward," says Mattias Lundgren, President & CEO of SSM.

SSM will pay a purchase price corresponding to the amount invested in the Järla Station project and the expected future profits from the Metronomen project. The transaction will be carried out during Q2 2021 at the latest and will have a -23.4 MSEK impact on SSM’s cash flow during 2021 as well as a negative reporting-related impact of -16.8 MSEK that is expected to be charged to Q4 2020.