SBB has agreed to enter into a joint venture, SBB Infrastructure, together with funds managed by global alternative investment manager Castlelake. In connection with the establishment of the joint venture, SBB Infrastructure has entered into a loan agreement with Castlelake, supported by Atlas SP Partners, for approximately SEK 5.2 billion (EUR 474 million). SBB Infrastructure will use a part of the loan proceeds to acquire properties from SBB and a part to refinance debt to SBB.

SBB Infrastructure acquires the properties at the market value as of 31 December 2023, amounting to SEK 5.7 billion (EUR 519 million). SBB Infrastructure will receive collateral from SBB in form of properties valued at SEK 3.7 billion (EUR 337 million) as additional collateral to provide security for the loan, making the total pool of collateral used for the loan SEK 9.4 billion (EUR 856 million). The community portfolio will be operated and managed by SBB Infrastructure through a management agreement with SBB.

SBB will use the proceeds from the Transaction to strengthen its financial position and amortise debt.

“The Transaction confirms the strong value of SBB’s community portfolio, which distinguishes itself through growing demand, inflation-proof cash flows and low risk of rental losses. The cash proceeds provide the opportunity to refinance debt and execute strategic measures to maximise value for the group over time. We look forward to the partnership with Castlelake," says Leiv Synnes, CEO of SBB.

The Transaction is subject to customary closing conditions. The Transaction is not subject to competition clearance. Closing will occur as soon as all closing conditions have been fulfilled, which is expected to occur in March 2024.

J.P. Morgan, Vinge, Wistrand, and Waselius Wist advised SBB, DLA and CBRE advised Castlelake and CWT and Roschier advised Atlas.