SBB Sells SEK 1.35 Billion Social Infrastructure Portfolio to PPI, Lifting Ownership Stake
STOCKHOLM, Sept. 21, 2026 — Samhällsbyggnadsbolaget i Norden AB (SBB) has entered into agreements to sell a portfolio of six social infrastructure properties to its associated company Public Property Invest AB (PPI) for an underlying property value of approximately SEK 1,350 million, the company announced Monday. The consideration will be settled through a combination of cash and newly issued PPI shares, increasing SBB's ownership stake in PPI from approximately 41% to approximately 43%.
Deal Structure: Cash and Equity Consideration
After deducting approximately SEK 88 million in remaining project costs from the agreed property value, the net consideration amounts to approximately SEK 1,263 million. Of that total, approximately SEK 250 million will be paid in cash to SBB, with the remaining approximately SEK 1,013 million settled through the issuance of 39,453,642 new PPI shares priced at SEK 25.67 per share — the most recently reported net asset value. The transaction is being made at a discount of approximately three percent to the underlying property value.
The structure means SBB is recycling a substantial portion of the asset value back into PPI equity rather than taking a full cash exit, retaining economic exposure to the portfolio through its enlarged stake in the listed Nordic public property platform.
Portfolio Composition and Lease Profile
The six properties carry a combined lettable area of approximately 63,400 square meters, an estimated annual net operating income of SEK 76.1 million upon completion, and an average remaining lease term of 8.1 years. The three largest assets together represent approximately 84% of the transaction value and include a newly built elderly care home in Stockholm leased to Ersta Diakoni on a 15-year agreement, a recently fully renovated police station located just outside central Helsinki, and an ongoing development project in Karlskrona where SAAB has signed a 10-year lease for the entire property. The portfolio also includes two additional social infrastructure properties in Karlskrona, with Karlskrona Municipality as the primary tenant.
The asset mix is consistent with SBB's long-standing focus on properties leased to state and municipal tenants across the Nordic region — a segment characterized by long lease durations and government-backed income streams.
Strategic Context: Deleveraging and Platform Consolidation
The transaction is part of SBB's broader multi-year effort to reduce leverage, release capital, and concentrate its public property holdings within PPI as a dedicated platform. The cash component of the consideration directly supports SBB's balance sheet, while the share consideration deepens the company's position in PPI without requiring a full disposal of the underlying assets.
This deal follows a larger 2025 transaction in which SBB transferred a major Nordic social infrastructure portfolio — referred to as SocialCo — to PPI at a total property value of around SEK 32 billion. That transaction was financed in part through the issuance of 446.9 million new PPI shares to SBB at NOK 23 per share, giving SBB approximately 39.99% economic ownership and 33.34% voting rights in PPI. APG, through APG Invest, also participated in that transaction, acquiring a portion of SBB's non-voting PPI shares and providing SBB with approximately NOK 4.1 billion in cash proceeds.
The current SEK 1.35 billion transaction represents a continuation of that platformization strategy, seeding PPI with additional SBB assets and further consolidating SBB's position in the vehicle.
"The Transaction is a good example of the transition SBB has undergone in recent years. We have progressively developed and worked with our remaining investment and project properties, with the aim of subsequently divesting them to property management organizations. In this case, the Transaction is carried out with one of our associated companies, meaning that we will continue to participate in the value creation in the Portfolio. We are releasing capital and increasing our financial flexibility, while the share consideration gives us continued exposure to social infrastructure and creates better conditions for SBB's continued development and long-term value creation," said Andreas Morfiadakis, CEO of SBB.
Timeline and Conditions
The transaction is expected to close in the fourth quarter of 2026, subject to customary closing conditions. Those conditions include approval by shareholders of both SBB and PPI at separate extraordinary general meetings. Completion of the portion of the transaction relating to SAAB's premises in Karlskrona is subject to additional conditions tied to the development project's progress.