The deal, together with conventional external financing, enables the completion of Klövern's project portfolio of approximately 24,000 homes and thus the ambition to become one of Sweden's largest housing companies.

The transfer is scheduled for August 2023. In connection with the transfer, Klövern will conduct a directed share issue of SEK 1 billion, whereby Nrep will subscribe for shares in Klövern. Nrep’s ownership in Kövern will then amount to 65 percent. After the completed transaction and first share issue, Corem's ownership will amount to approximately 17 percent. The owners will then be offered the opportunity to retain their ownership by participating in future share issues.

"It is gratifying that Nrep has chosen to become a partner in Klövern and thereby enable the acceleration of Klövern's operations. The deal ensures Klövern's future financing and development, which is also positive for Corem, that remains a major shareholder in the company. For Corem, the deal also frees up liquidity that can be used to pay off bonds we have maturing in 2024. This strengthens us further," said Rutger Arnhult, CEO at Corem.

The deal implies a significant liquidity effect for Corem, amounting to SEK 1.4 billion in 2023. In connection with the completion of the transaction in Q3 2023, the holding in Klövern will be reclassified from Shares in associated companies to Financial assets valued at fair value. The accounting effect of the deal implies an estimated negative profit effect of approximately SEK 1 billion, which will be reported in the second quarter of 2023. In the event of a future exit, Corem may receive an additional purchase price of approximately SEK 250 million, which is index-adjusted.

In connection with the deal, Corem divests two investment properties with residential potential, Sicklaön 356:1 in Nacka and Kungsängen 24:3 in Uppsala, to Klövern. The building rights associated with the properties were included in the transaction in 2022 when Klövern was formed. The investment properties are sold based on a net property value of SEK 250 million.

Including the above transactions, Corem has completed or agreed on divestments for, in total, over SEK 11.2 billion so far during the year, of which divestment of properties for approximately SEK 8.6 billion, divestment of shares in Castellum for SEK 1.2 billion and shares in Klövern for SEK 1.4 billion.

Rune Kock, CEO of Nrep said:

“Sweden has an increasing population growth, and this acquisition enables us to meaningfully contribute to the supply-demand gap of housing, whilst growing our portfolio in collaboration with mission-aligned partners. Klövern has a strong residential portfolio which, in combination with our strategy and ambition in the residential segment, has great potential for development. Together with Klövern’s existing owners, we look forward to nurturing and expanding the company – already this year, we intend to start production of about 800 apartments and thus addressing housing shortages and helping boost the future prospects of the country’s housing industry.”