SSM to streamline project portfolio within framework for new business plan
- Divest projects Älvsjö Quarters and Järnet to a related party
SSM Holding AB (publ), (“SSM” or the “Company”), Sweden’s leading developer of smart, affordable housing, is continuing to realize the company’s recently adopted five-year business plan for 2020 to 2024 to create value and optimize cash flow. The Company today signed agreements to sell the entire Järnet project as well as 50 percent of the Älvsjö Quarters project for a total of approximately 34.0 MSEK. Agreements have been entered into with a related party which is why the Board of Directors of SSM will convene an Extraordinary General Meeting to approve the transactions.
During Q3 2019, SSM adopted a new five-year business plan for 2020 to 2024. The business plan has a clear focus on balanced risk-taking and optimizing cash flow in the near future. The Bromma Boardwalk and Bromma Square projects have already been divested with a positive impact on cash flow after the business plan was adopted.
SSM is now taking another strategic step within the framework of the business plan by entering into an agreement with Masugnen 1 Fastighets AB (which is in the process of changing name from Goldcup 25289 AB) regarding the sale of the entire Järnet project (Masugnen 1) that includes about 240 building rights and an agreement with Clear Real Estate Holding AB (which is in the process of changing name from Goldcup 19957 AB) regarding the sale of 50 percent of the Älvsjö Quarters project (Stockholm Herrgården 1) which includes 516 building rights. The total sale price for both projects amounts to approximately 34.0 MSEK. The transactions are subject to customary contract law terms and conditions.
Masugnen 1 Fastighets AB and Clear Real Estate Holding AB are controlled by members of SSM’s Board of Directors and company shareholders Ulf Morelius and Ulf Sjöstrand and are thus considered related parties. Any sales are therefore conditional on the approval of a general meeting.
The Board of Directors of SSM considers the conditions of the sales to be on market terms and that the terms and conditions of the agreements are customary. External estimates of the market value of the projects will be available at ssmlivinggroup.com together with full supporting documentation for the Extraordinary General Meeting three weeks before the meeting at the latest.
SSM’s Board of Directors intends to convene an Extraordinary General Meeting to approve the transactions soon.
This information is such information that SSM Holding AB (publ) is required to disclose in accordance with the EU Market Abuse Regulation.
The information was submitted, through the contact person below, for publication on February 17, 2020 at 13:05 CET.
For more information, please contact:
Ann-Charlotte Johansson
EVP Communications & IR
Phone: +46 761 65 17 71
Email: ann-charlotte.johansson@ssmliving.se
About SSM Holding AB (publ)
SSM produces functionally smart and affordable homes with attractive common areas, close to public transport and the city center for
the company’s target group – the urbanites of tomorrow. The company envisions a housing market that is accessible to as many people
as possible. SSM is the leading property developer in its niche within the Greater Stockholm area and at end of December 2019, the company has approximately 4,500 building permits in its portfolio. SSM has been listed on Nasdaq Stockholm’s mainlist since April 6, 2017. www.ssmlivinggroup.com
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