STOCKHOLM - Swedish property group Samhällsbyggnadsbolaget i Norden AB (SBB) has unveiled a strategy aimed at mitigating the challenges posed by its significant debt levels and the current environment of rising interest rates. Central to this strategy is a €600 million ($650.9 million) debt buyback program, which is contingent on the successful completion of a deal with Brookfield Asset Management (TSX:BAM).
The proposed transaction would see Brookfield acquiring a majority interest in SBB's varied portfolio of public properties, with a particular focus on Nordic education facilities. The sale would provide SBB with a much-needed liquidity boost of 8 billion Swedish kronor ($757.9 million), which it plans to use to facilitate the debt repurchase.
This move by SBB represents a significant step in restructuring its finances and comes as many companies in the real estate sector are grappling with the implications of higher borrowing costs. By selling a substantial part of its asset base to Brookfield, SBB aims to strengthen its balance sheet and improve its financial flexibility during these challenging economic times.
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