Samhällsbyggnadsbolaget i Norden AB (“SBB”) and K2A have entered into an agreement to divest the properties part of Ångpannan 10, Ångpannan 12 and part of Västerås 1:202 in Västerås to Intea with an estimated exit during the second quarter of 2025. The sale relates to the new Kriminalvårdens hus that is under construction for the Prison and Probation Service. The lettable area after completion is estimated to amount to 34,600 square metres. The transaction is based on an underlying property value of SEK 620 million and SBB’s share of the transaction is expected to release approximately SEK 300 million in cash and cash equivalents at the time of closing before deduction of transaction costs. The transaction is made in the form of a company and is subject to, among other things, customary regulatory approvals.
Through a JV company, SBB and K2A entered into a lease agreement with the Swedish Prison and Probation Service in 2022 to develop a remand prison in central Västerås. This lease has now been supplemented with an additional lease and runs for 20 years from completion. The annual rental value is based on the costs incurred in the project and is currently estimated at SEK 220 million. The total preliminary lettable area amounts to 34,600 square metres and includes 160 remand prison rooms as well as premises for probation, education, the national transport unit, administration, staff facilities and a garage. This project and the associated properties part of Ångpannan 10 and 12 and part of the property Västerås 1:202 are included in the acquisition. The properties comprise just under 17,500 square metres of land area.
“In 2017, SBB acquired a property with a building built in 1949 containing approximately 4,500 square metres of premises, and since the acquisition we have worked actively to develop the property together with the City of Västerås and later also with K2A through a joint venture company, the result of which is the new Prison and Probation Service building with 34,600 square metres of premises. Kriminalvårdens Hus is a very good example of how value is created through active property development. The sale is in line with SBB’s stated strategy of reducing JV holdings and we are pleased to have Intea as a buyer with extensive experience in owning and managing similar properties,” says Krister Karlsson, Deputy CEO of SBB.
For further information, please contact:
Krister Karlsson, Deputy CEO, [email protected], [email protected]
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. Further information about SBB is available at www.sbbnorden.se.