SBB works actively with property development, which entails development of building rights and participation in property development projects in joint ventures with a limited implementation risk for SBB. The company’s strategy is that around 10 percent of the property portfolio is to be comprised of the property segment Other, which entails cash flow properties with identified development potential. The segment should generate earnings of SEK 250-400m per year on average over a business cycle. The properties that SBB acquires within the segment Other are cash flow properties with development potential that generate cash flow until a detailed development plan and further development. The acquisitions are most often made off market after SBB has held a dialogue with the respective municipality to ensure that the property with the local area is prioritized for upcoming urban development.
SBB believes that sustainable urban development is based in the locations near public transport and that previously developed land is improved rather than claiming important green spaces for urban development. SBB is driven by residents of modern central housing being able to live without their own car and that transportation, local services, healthcare, schools and care are to be in the local area. Most of SBB’s development properties are within the appointed priority transportation hubs, such as commuter rail stations and important railway stations for regional service.
SBB’s property development organisation
SBB has the Nordic region’s leading property development team and is led by Vice President Krister Karlsson. The organization develops 1,8m sq.m. of GFA in various phases of detailed development planning. SBB has extensive experience of initiating and implementing sales early in the planning process and has sold building rights to both cooperative companies, listed companies and public service housing companies. The organization is also responsible for project development that takes place within SBB’s property management portfolio.