Sveafastigheter Bostad becomes part of SBB, contributes 6,000 apartments in Greater Stockholm - SBB also makes a directed new share issue of 44.5 million Class B shares at a price of SEK 31.10

Samhällsbyggnadsbolaget i Norden AB (publ) (“SBB”) acquires 100 percent of the shares in Sveafastigheter Bostad (“Sveafastigheter”) for a purchase price of SEK 2,770 million. The transaction is financed in half through an issue of 44,533,762 Class B shares at a subscription price of SEK 31.10 per share, and the remaining part is financed by SBB realising certain financial assets. SBB already today owns, including ongoing projects, approximately 2,000 apartments in Greater Stockholm and with this acquisition the portfolio grows to approximately 8,000 apartments. All in all, this makes SBB a leading private landlord of rent regulated apartments in Greater Stockholm. Sveafastigheter is already one of the most sustainable housing companies in Stockholm and that work will continue within the framework of SBB (some examples of Sveafastigheter's projects can be found appended to this press release).

The acquisition includes a total of approximately 7,100 apartments including development portfolio and projects which, in addition to Greater Stockholm, are located in the Öresund region and in Swedish university towns.

Sveafastigheter, which will continue to operate as a wholly owned subsidiary of SBB, currently has:

• A development portfolio with approximately 40 projects, primarily in Stockholm, with approximately 5,000 apartments
• A property management portfolio of 1,128 apartments in Stockholm and in the Öresund region with an annual net operating income of SEK 87 million
• Ongoing implementation projects consisting of approximately 1,000 apartments with an annual net operating income of SEK 104 million

As a result of this, Sveafastigheter's organisation will not change, but certain resources will also be used in SBB's other operations. CEO Viktor Mandel will be part of SBB's management team, Fredrik Cronqvist will work as a business developer with a focus on growth in Skåne in Sweden and in Denmark, and Harry McNeil will contribute to SBB's sustainability team.

“Sustainability and growth in rent regulated residentials in Greater Stockholm is a priority for SBB, which we now show when we considerably strengthen our position through the acquisition of Sveafastigheter. As Europe's leading company in social infrastructure, it is important to be a distinct player in the Stockholm market, which is northern Europe's most liquid and attractive real estate market. The staff at Sveafastigheter is extremely experienced and skilled, and we see great potential for continued growth of the project portfolio, as well as that we now add additional implementation project to our development portfolio which already today is the largest one in the Nordics after Obos” comments Ilija Batljan, CEO and Founder of Samhällsbyggnadsbolaget i Norden AB.

“Sveafastigheter has built up a strong capability to develop attractive rent regulated residential projects, and together with SBB's strong financial position, we will be able to increase the pace and develop more homes with sustainability in focus. We have for a long time been inspired by SBB's development and look forward to working together,” says Viktor Mandel, CEO of Sveafastigheter Bostad.

The transaction is financed through an issuance of 44,533,762 new Class B shares at a subscription price of SEK 31.10 per share, corresponding to a total value of SEK 1,384,999,998.20. The subscription price has been established in advance and equals the shares market value with a premium of approx. 11.2 percent compared with the closing price of SEK 28.16 of the Class B share on Nasdaq Stockholm on 5 November 2020. The resolution on the share issue will be resolved on by the board of directors in SBB in connection with completion, implying a dilution for existing shareholders on approx. 3.0 percent, and is carried out based on an authorization from the annual general meeting 2020. The share issue will be directed to Sveafastigheter Bostad Group AB. The newly issued shares will be subject to transfer restrictions, so-called lock-up, for a period of 6 months.

Completion is intended to take place on 15 December 2020.

For further information, please contact:

Ilija Batljan, CEO and Founder of Samhällsbyggnadsbolaget i Norden AB, ilija@sbbnorden.se

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 submitted for publication, through the agency of the contact person set out above on 6 November 2020, at 08:00 CET.

Samhällsbyggnadsbolaget i Norden AB (publ) (SBB) is the Nordic region’s leading property company in social infrastructure. The Company’s strategy is to long term own and manage social infrastructure properties in the Nordics and rent regulated residential properties in Sweden, and to actively work with property development. Through SBB’s commitment and engagement in community participation and social responsibility, municipalities and other stakeholders find the Company an attractive long-term partner. The Company’s series B shares (ticker SBB B) and D shares (ticker SBB D) are listed on Nasdaq Stockholm, Large Cap. The Company’s preference shares (ticker SBB PREF) are listed on Nasdaq First North Premier Growth Market. Certified Adviser is Erik Penser Bank (contact: certifiedadviser@penser.se / +46 84638300). Further information about SBB is available at www.sbbnorden.se.