SBB sells to Lovisenberg for EUR 245M

SBB.

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SBB sells to Lovisenberg for EUR 245M

Norway — SBB has sold two properties to the tenant Stiftelsen Diakonissehuset Lovisenberg for NOK 2,815 million (EUR 245 million). The properties being sold are the hospital on Ragnar Ströms Veg 10 in Ullensaker of which SBB owns 100 percent and an adjoining development plot of which SBB today owns 65 percent, co-owning with a local developer.

2023-09-27

The properties have an annual rental income of approximately NOK 119 million at the 2024 price level and an estimated net operating profit of NOK 114 million, implying an initial yield of 4 percent. The sale is done approximately 10 percent below book value per Q2 2023.

"The relationships with our tenants are one of our greatest assets and we have previously said that we are open to dialogues with both private and public tenants who want to acquire properties where they themselves are tenants," says Leiv Synnes, CEO of SBB.

Stiftelsen Diakonissehuset Lovisenberg is today one of the company's largest tenants and will after the sale remain a significant tenant. Handover is planned for September 29 and SBB intends to use the net proceeds from the transaction of approximately NOK 955 million to strengthen the company’s liquidity and financial position. As of this deal, SBB has now signed all deals linked to the letters of intent communicated on July 13, 2023.

Axel Ohlsson

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