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Swedish real estate company Samhallsbyggnadsbolaget i Norden (SBB) has agreed to divest its residential property business and a residential portfolio from SBB Development to Klarabo in a share-based transaction valued at SEK 6.83 billion. The deal includes assets worth SEK 5.86 billion and an additional portfolio valued at SEK 973 million. Payment will be made through Klarabo Class A and Class B shares. The transaction is expected to reduce SBB’s ownership in Sveafastigheter and generate annual savings of around SEK 120 million while ending a costly Morgan Stanley-linked joint venture.
Swedish property company Samhallsbyggnadsbolaget i Norden, commonly known as SBB, has entered into an agreement to divest its residential property business along with a residential portfolio from SBB Development to Klarabo in a transaction valued at SEK 6.83 billion. Advertisement
According to the company’s announcement issued during the past week, the assets involved in the transaction include SBB Residential Property valued at SEK 5.86 billion and an additional residential portfolio from SBB Development valued at SEK 973 million.
The consideration for the deal will be paid entirely through equity in Klarabo. Under the agreement, SBB will receive 32,600,001 Class A shares and 74,997,402 Class B shares in Klarabo.
As part of the wider restructuring process, Sveafastigheter and Klarabo have also adopted a merger plan. Following the completion of the transaction, SBB’s ownership stake in Sveafastigheter is expected to decline to 58.5% from the current 63%.
The company said the transaction is expected to create annual savings of around SEK 120 million. The deal will also end the Morgan Stanley joint venture linked to SBB Residential Property, which previously carried an annual cost of 13%.
SBB has been working on several measures over the past few years to strengthen its balance sheet and reduce debt pressure amid rising financing costs across European real estate markets. The company has previously undertaken asset sales, refinancing initiatives and portfolio restructuring as part of its broader financial strategy.
The latest divestment comes as property companies across Europe continue to review their residential and commercial holdings to improve liquidity and streamline operations in a high-interest-rate environment.
Source Reuters
5th Jun, 2025
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