SBB acquires SEK 950m social infrastructure portfolio in Linköping, Sweden’s fifth largest city
Samhällsbyggnadsbolaget i Norden AB (publ) ("SBB") continues to grow its portfolio of social infrastructure properties through the purchase of 24 properties from Botrygg AB that include elderly care homes, health care centres and education properties located in Linköping and mainly let to the Municipality of Linköping for approximately SEK 950m.
The portfolio is fully let and the properties are located in attractive and central locations in Sweden’s fifth largest city, Linköping. 97 per cent of the rental income is generated from activities financed by public funds, of which 88 per cent come directly from the Municipality of Linköping. The average contract length in the portfolio is approximately 7.6 years and rental income is SEK 49.7 million. The total lettable area in the portfolio is 28,261 sq.m. To ensure a smooth transition and continuity towards the Municipality, Botrygg will continue to manage the portfolio during a transitional period.
"We are looking forward to our long-term cooperation with the Municipality of Linköping and are impressed by Botrygg’s high quality property portfolio. With this acquisition, we continue to strengthen our position as the Nordic region's leading listed player in social infrastructure and strengthen our property management in the Nordic region's largest cities," says Ilija Batljan, CEO and Founder of Samhällsbyggnadsbolaget i Norden AB.
“A large proportion of our portfolio consisted of community service properties in Linköping. We want to increase the proportion of residential properties and this sale gives us a good capacity to acquire new projects. For Botrygg, it was also important to sell to a player who stands for quality and who has a long-term perspective, says Adam Cocozza, CEO Botrygg.
Closing will take place on May 31, 2019.
For further information, please contact:
Ilija Batljan, CEO and Founder of Samhällsbyggnadsbolaget i Norden AB, +46 70 518 39 67, ilija@sbbnorden.se
Adam Cocozza, CEO Botrygg AB, +46 73 988 20 35, adam@botrygg.se
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. At the beginning of 2018, SBB was named the winner of the Real Estate Company of the Year Award for 2017. The company’s series B shares (short name SBB B), D shares (short name SBB D) and preference shares (SBB PREF) are listed on Nasdaq First North Premier. Certified Adviser is Erik Penser Bank (contact: certifiedadviser@penser.se / +46 84638300). More information about the company is available at www.sbbnorden.se.