Samhällsbyggnadsbolaget i Norden AB (publ) (“SBB”) has entered into agreement for the sale of an office building in central Oslo to DNB Liv. The sale is carried out to an agreed net property value of SEK 4,897m (NOK 4,487.5m), which exceeds the net property value at the time of SBB’s acquisition with approximately NOK 473m, with regards to all transaction costs (corresponding to a total value increase of 12 % since March 2017).

The property has a total lettable area of approximately 49,000 square meters and is fully let to Norway’s largest financial institution DNB Bank ASA until June 2027, with an annual rental income of about SEK 205m and a net operating income of about SEK 194m.

In connection with the sale, SBB redeems existing senior and junior financing connected to the property, which will reduce SBB’s annual financial expenses by approximately SEK 139m. The average interest rate for the loans redeemed in connection with the transaction is 4%.

”This transaction further strengthens SBB’s already strong balance sheet in our journey towards a BBB rating, and we look forward to coming updates of our credit rating. While we would have been happy to continue to own and develop Oslo’s most attractive office property in the midst of Bjørvika, it feels right to sell to DNB Liv since the bank has its head office in the building,” says Ilija Batljan, CEO and Founder of SBB.

The cash proceeds from the asset sale together with announced issuance of the hybrid bond will be used for the redemption of existing secured indebtedness of SEK 3.4bn and new investments in social infrastructure (elderly care homes, group housing and schools) in the Nordics and rent regulated residentials in Sweden. This is an important step in SBB’s intention to actively manage its portfolio so that the balance shifts more towards social infrastructure and rent regulated residentials focusing on the target to achieve and maintain a BBB rating.

The closing is scheduled to take place on April 30, 2019.

DNB Næringsmegling AS and Advokatfirmaet Selmer AS has acted as advisers for SBB in the transaction.

For further information, please contact:

Ilija Batljan, CEO and Founder of Samhällsbyggnadsbolaget i Norden AB, +46 70 518 39 67, [email protected]

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 April 16, 2019, at 09:50 CET.