SBB Clears Conditions for SEK 1.35 Billion Social Infrastructure Sale to Public Property Invest

Samhällsbyggnadsbolaget i Norden AB (SBB) announced Oct. 23, 2026, that all conditions for the sale of a social infrastructure portfolio to Public Property Invest (PPI) have been met. The agreed property value is SEK 1.35 billion, and the firm said closing of the transaction is expected on Nov. 5, 2026.

Public Property Invest Portfolio Acquisition: Deal Terms

The portfolio comprises six social infrastructure properties in Sweden and Finland, with a combined area of approximately 63,400 square meters (about 682,500 square feet). The assets carry an estimated annual rental value of SEK 107 million and annual net operating income of SEK 76.1 million, with an average remaining lease term of 8.1 years.

Based on the agreed value and stated net operating income, the implied NOI yield is approximately 5.64%. The implied price is roughly SEK 21,294 per square meter, or about SEK 1,979 per square foot. Neither company has described the yield as a formal cap rate.

The three largest properties account for approximately 84% of the transaction value, or roughly SEK 1.134 billion.

Consideration and SBB's Stake in PPI

The consideration consists of both cash and equity. It includes approximately SEK 250 million in cash and approximately SEK 1.01 billion through the issuance of 39.45 million PPI shares at SEK 25.67 per share. PPI will also assume financing of remaining project costs.

Through the transaction, SBB is expected to raise its ownership of PPI to approximately 43%, from 41%.

Properties in the Social Infrastructure Portfolio

The six assets are identified by location and use:

• Stockholm, Sweden: a newly built elderly-care home leased to Ersta Diakoni under a 15-year lease.
• Helsinki area, Finland: a recently fully renovated police station located just outside central Helsinki.
• Karlskrona, Sweden: a property undergoing tenant improvements, for which SAAB has signed a 10-year lease covering the entire property.
• Gullberna, Karlskrona, Sweden: two additional properties, with Karlskrona Municipality as the primary tenant. PPI already owned four properties in the area.
• Visby, Gotland, Sweden: one social infrastructure property.

Context: SBB's Portfolio and Balance Sheet Activity

SBB invests in social infrastructure in the Nordic region and holds significant ownership stakes in several listed and unlisted companies, managing assets directly and indirectly across community properties and residential real estate. Its B shares (SBB B) and D shares (SBB D) trade on Nasdaq Stockholm.

The company's property portfolio was valued at SEK 35.325 billion as of June 30, 2026, up from SEK 34.935 billion in the comparison period. SBB has been divesting non-core assets while retaining positions in core holdings. Recent financing activity includes SEK 3.6 billion of five-year bank financing and a EUR 200 million five-year bond issue.

SBB's reported trailing 12-month revenue was approximately SEK 1.18 billion, compared with SEK 1.871 billion for 2025 and SEK 7.447 billion in 2022. Trailing 12-month operating result was approximately negative SEK 121 million, versus negative SEK 99 million for 2025.

Implications for SBB and PPI

For SBB, the transaction combines cash proceeds with PPI shares, allowing the company to reduce direct property exposure while maintaining a larger economic interest in PPI. For PPI, the acquisition adds approximately SEK 76.1 million of annual net operating income and expands its social infrastructure holdings with long-duration leases to public-sector and institutional tenants, including Ersta Diakoni, SAAB and Karlskrona Municipality.

Sources

• SBB press release, Oct. 23, 2026: https://www.sbbnorden.se/sv/sbb-meddelar-att-tilltradesvillkoren-for-transaktionen-med-ppi-om-135-mdkr-har-uppfyllts/