FINLAND; SWEDEN —Public Property (PPI) Invest has reached an agreement to acquire a portfolio consisting of six social infrastructure properties from Samhällsbyggnadsbolaget i Norden (SBB). The transaction features a total agreed property value of SEK 1.35 billion, which includes a deduction of approximately SEK 88 million primarily related to ongoing tenant improvement project costs. The purchase price reflects a discount of roughly three percent relative to external valuations. Settlement of the net consideration involves issuing approximately 39.45 million new shares at the most recently reported net asset value, alongside a cash payment of roughly SEK 250 million.
The acquired portfolio spans approximately 63,400 square meters of lettable space, generating an estimated annual net operating income of SEK 76.1 million with a weighted average remaining lease term of over eight years. Key assets within the transaction include a newly constructed elderly care facility in Stockholm, a recently renovated police station near Helsinki, and a dedicated property in Karlskrona leased to SAAB. Additional assets include properties in the Gullberna area involving local municipal tenancy and a site in Visby.
This strategic transaction aligns with the buyer's operational focus on Nordic community service real estate backed by public sector tenants. Settling the majority of the purchase consideration through equity issuance supports corporate capital structure management and strengthens debt metrics. Furthermore, the acquisition expands the firm's footprint in key municipal and governmental property sectors across Sweden and Finland, securing long-term predictable cash flows from creditworthy institutional tenants.
Completion of the transaction is contingent upon multiple conditions, including green lights from extraordinary general meetings held by both participating entities under applicable regulatory frameworks for related-party transactions. Additionally, the acquisition of the asset tied to SAAB requires specific clearances from regulatory authorities and the tenant. Market participants anticipate final closing during the fourth quarter of the year.
PPI Public Property Invest (PPI) is a Nordic real estate enterprise specializing in the acquisition, management, and development of social infrastructure assets leased to public sector entities. Samhällsbyggnadsbolaget i Norden (SBB) is a major Nordic real estate company focused on community service properties and residential housing.
