PPI Public Property Invest AB ("PPI") has entered into agreements with Samhällsbyggnadsbolaget i Norden AB (publ) ("SBB"), pursuant to which PPI will acquire a portfolio of six social infrastructure properties (the "Portfolio") from SBB (the "Transaction"), see appendix 1.
From the agreed property value of approximately SEK 1,350 million, a deduction of approximately SEK 88 million has been made mainly attributable to remaining project costs in relation to an ongoing tenant improvement expected to be completed July 2027. The transaction is made at a discount of approximately 3 per cent based on SBB´s external valuations.
The net consideration of SEK 1,263 million for the Portfolio will be settled by issuing 39,453,642 new shares in PPI at the most recently reported net asset value of SEK 25.67 per share, and approximately SEK 250 million will be paid in cash.
The Portfolio comprises six social infrastructure properties with a combined lettable area of approximately 63,400 sqm and have an estimated annual rental value of SEK 107 million and an estimated annual net operating income of SEK 76.1 million with an average remaining lease term of 8.1 years.
The three largest properties together account for approximately 84 percent of the Transaction value and consist of a newly built elderly care home in Stockholm with Ersta Diakoni as tenant on a 15-year lease agreement, a recently fully renovated police station just outside central Helsinki, and an ongoing tenant improvement in Karlskrona, where SAAB has recently signed a 10-year lease agreement for the entire property. The Transaction also includes two properties in the Gullberna area of Karlskrona with Karlskrona Municipality as the primary tenant, complementing PPI's existing four properties in the area, as well as a property in Visby, Gotland.
“This transaction is entirely in line with our strategy of owning, operating and developing social infrastructure properties in the Nordics. The portfolio has [mainly] solid, government-backed tenants on long leases and is acquired at an attractive yield. Around 80 % of the proceeds will be paid issuing new shares at NAV, which will also positively impact our debt metrics”, said André Gaden, CEO
Timeline
The Transaction constitutes a related party transaction covered by Chapter 16a of the Swedish Companies Act. As such, the Transaction is subject to approval by the shareholders of both PPI and SBB at separate extraordinary general meetings.
In addition to the foregoing condition, completion of the acquisition of the property with SAAB as a tenant, is also subject to approval by the ISP and the tenant.
The Transaction is expected to be completed in the fourth quarter of 2026.
The preparation of the proposal
Lennart Sten has not participated in the Board's preparation of, or resolution regarding, the Transaction due to his position as Chairman of the Board of both PPI and SBB.
Sven-Olof Johansson has not participated in the Board's preparation of, or resolution regarding, the Transaction due to his shareholding in SBB.