Sveafastigheter, one of Sweden’s largest purely focused residential real estate company with a focus on actively owning, managing and developing properties across growing regions in Sweden, announces its intention to list the Company’s shares on Nasdaq First North Premier Growth Market. Following the Listing, Sveafastigheter will become Sweden’s largest listed residential real estate company with standing assets of approximately 14,500 apartments and approximately 7,900 apartments in either ongoing development or project development. Based on the earnings capacity as of 30 June 2024, Sveafastigheter generates a rental income of approximately SEK 1.5bn with a net operating income of approximately SEK 1.0bn.

Sveafastigheter is since the separation from Samhällsbyggnadsbolaget i Norden a purely focused residential real estate company with an operational focus and its own property management and development organisation, which is believed to create the foundation for organic growth. This is achieved both through an increased surplus ratio on standing assets and through new constructions driven by structural demand for housing. As part of the separation, the company has also appointed a new Board of Directors and management team focusing on creating a clear strategic direction and transparent capital structure, including a wholly owned property portfolio, low leverage with financing primarily from Nordic banks, and having a single share class.

The Board of Directors and management of Sveafastigheter, together with its owner SBB, believe that the listing will enhance the operational and financial conditions, while providing increased flexibility through a clearer and strengthened profile with tenants, municipalities, investors, and financial institutions.

The intended listing will be carried out through a broadening of ownership, where existing shares in the company currently owned by SBB, will be offered to the general public in Sweden as well as to qualified investors in Sweden and internationally. Shareholders in SBB will have priority to acquire shares in the offering. The company also aims to change listing venue to the Nasdaq Stockholm Main Market within 18 months.

Nasdaq Stockholm has assessed that Sveafastigheter meets the applicable listing requirements and will approve an application for the admission of the Company’s shares to trading on First North Premier, provided that certain conditions, including the distribution requirement, are fulfilled. Subject to market conditions, the cffering and listing are expected to take place during the fourth quarter of 2024.

”With our business model focused on operational efficiency and a property portfolio in Sweden's growth regions together with an extensive development pipeline, Sveafastigheter is well-positioned for good profitability and organic growth. Sveafastigheter is a residential company that actively manages and develops attractive rental properties to meet the structurally growing demand for housing, with tenant satisfaction, sustainability and our profitability as key priorities. I look forward to the next step in Sveafastigheter’s development as a listed company and our continued pursuit of being Sweden’s leading residential company,” says Erik Hävermark, CEO of Sveafastigheter.

"Sveafastigheter has established a strategically located portfolio of rental properties combined with an attractive project development pipeline that offers significant potential. The Company is led by a highly competent management team and is operationally led by an experienced and efficient management and development organisation. The Listing of the Company provides access to the Swedish and international capital markets, which is an important step in Sveafastigheter’s continued development and growth," says Peter Wågström, Chairman of the Board of Directors of Sveafastigheter.

"This is a significant milestone that creates Sweden's largest purely focused, publicly listed residential company. The scale provides the conditions for efficient and profitable property management. A focus solely on residential properties offers advantages, such as developing high expertise within core areas. Sveafastigheter has strong competence in project development, which not only generates profits but also awards for good and sustainable urban development. We believe that Sveafastigheter is, and will continue to be, a go-to partner for municipalities. In addition, residential properties have over long periods generated strong risk adjusted returns compared to other asset classes, which should appeal to investors," says Leiv Synnes, CEO of SBB.

Sveafastigheter owns, manages, and constructs attractive rental apartments in growth regions across Sweden, with a total property value, including projects, of approximately SEK 27.5bn. Sveafastigheter manages around 14,500 apartments in growth regions, of which approximately 94 percent are located in Sweden's three major metropolitan areas and university cities. Sveafastigheter focuses solely on regulated rental housing, implying a stable and non-cyclical market with low vacancy risk.

Sveafastigheter Bostad was founded in 2014 and acquired by SBB in 2020. In the following year, 2021, SBB and Kåpan Pensioner formed a joint venture and invested in the company Hemvist. In the same year, SBB also acquired a majority of the shares in the residential property company Unobo from Riksbyggen. Sveafastigheter was established in 2024 as an independent company with solely fully owned properties when the residential assets and the related parts of the organisation were separated from SBB, while the joint ventures were dissolved. The establishment of Sveafastigheter as an independent company creates the conditions for more efficient management and profitable organic growth.

With a strong focus on sustainability and local presence, Sveafastigheter has won several awards for its sustainable housing and satisfied tenants. The Company aims to create attractive rental apartments through active in-house property management and an efficient renovation process to maximise profitability and enhance tenant satisfaction. Sveafastigheter primarily undertakes new construction projects in the Stockholm-Mälardalen region, with a track record of long-term profitability and reliability in collaboration with municipalities.

DNB and SEB are Joint Global Coordinators and Joint Bookrunners.

Danske Bank, Nordea and Swedbank are Joint Bookrunners.

The legal advisors to the company regarding Swedish law are Advokatfirman Vinge KB, and regarding U.S. law, Milbank LLP. The legal advisors to the Joint Bookrunners are White & Case Advokataktiebolag regarding Swedish law and White & Case LLP regarding U.S. law.

Avanza and Nordnet act as Retail Distributors in the Offering.