Samhällsbyggnadsbolaget i Norden AB divests school property in Norway
Samhällsbyggnadsbolaget i Norden AB (publ) (”SBB”) divests a school property in Kristiansand, Norway, to Aviva Investors for an agreed property value of NOK 415.5 million (SEK 445.8 million). The property has generated a NOK 83 million return on equity (cash-on-cash) since it was acquired by SBB in May, 2017.
The property value is NOK 24.5 million (6%) higher than the external valuation conducted at year end 2017, or SEK 54.4 million (14%) after currency effects.
“The decision to sell this property was hard, but the opportunity to demonstrate the attractiveness of our assets on the property market was the decisive factor in going ahead with this transaction. Of course, financially this is a fantastic deal where in a short time period we have managed to generate a NOK 83 million return on our capital. This deal creates a good opportunities for us to be pro-active in the future and continue our development as the leading player in the Nordic region focusing on community properties,” comments Ilija Batljan, CEO and founder of Samhällsbyggnadsbolaget i Norden AB.
The property, which has a total rentable area of approximately 15,800 square meters, is fully let to Kristiansand municipality with a remaining rental period of approximately 20 years. The rental income amounts to approximately NOK 19.2 million per year. The property is expected to generate an operating net income of approx. NOK 17.9 million on an annual basis. The closing of the transaction takes place on April 30, 2018 and SBB will continue to do the property management of the property for Aviva Investors.
Aviva Investors acquires this property as the second investment of its Continental European Long Lease Strategy (CELLS) fund. This fund aims to deliver secure, predictable cash flows from predominately index-linked leases in a portfolio of Continental European properties with an initial focus on office, retail, logistic and alternative sectors in Germany, Austria, Benelux and Scandinavia.
“The Kristiansand transaction represents an attractive opportunity to invest into a very stable asset in the educational sector on a 20 year inflation protected lease with a government tenant. These characteristics make Kristiansand a defensive investment with a long-term secured cash-flow, which fits perfectly into the investment profile of the CELLS fund,” comments Matthias Hübner, Fund Manager Long Income Europe at Aviva Investors.
Aviva Investors is the global asset management business of Aviva plc. The business delivers investment management solutions, services and client-driven performance to clients worldwide. Aviva Investors operates in 15 countries in Asia Pacific, Europe, North America and the United Kingdom with assets under management of £353 billion as at 31 December 2017.
For further information, please contact:
Ilija Batljan, CEO and Founder of Samhällsbyggnadsbolaget i Norden AB, +46 70 518 39 67, email@example.com
This information is information that Samhällsbyggnadsbolaget i Norden AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was originally submitted for publication in Swedish, through the agency of the contact person set out above on April 05, 2018, at 13.20 CET.
About Samhällsbyggnadsbolaget i Norden AB (publ)
The company’s strategy is to own, manage and develop community service properties throughout the Nordic region and rental apartments in growth regions in Sweden. Through the company's commitment and engagement in community participation and social responsibility, municipalities and other stakeholders find the company an attractive long-term partner. SBB was named the winner of the 2017 Real Estate Company of the year Award. The company’s series B shares (short name SBB B) and preference shares (SBB PREF) are listed on Nasdaq First North Premier. Certified Adviser is Remium Nordic Holding AB (www.remium.com). More information about the company is available at www.sbbnorden.se.