SBB invests in social infrastructure in the Nordics. SBB develops and owns companies with the aim of creating leading operators in each business area.
Sveafastigheter, Public Property Invest and Nordiqus are all leading companies in their respective submarkets, with a clear focus and specialized expertise. The position of market leader brings many benefits – and often supports higher risk-adjusted returns. Moreover, investors perceive major companies with liquid shares and bonds as more attractive.
Stronger brand
It is easier for market leaders to attract new tenants and retain existing customers, and easier to gain the trust of partners and investors. A recognized and strong brand also facilitates recruitment and helps retain skilled staff.
Better risk diversification
Specific risk is mitigated by having a large and diversified portfolio – both in terms of assets and tenants. What remains is primarily general market risk.
Economies of scale
Major property companies can allocate central costs over more square meters and are able to employ more specialists. They also enjoy a stronger position in negotiations with suppliers and other business partners.
More business opportunities
Leading companies gain access to a larger share of market transactions, and have both the resources and the expertise to conclude more transactions.
More advantageous financing
Access to capital is crucial in the property industry. Generally speaking, major companies have lower business risk and thus better credit ratings, yielding lower financing costs. They also have broader access to the capital market and more financing options, so they are well placed to optimize capital acquisition.
Comprehensive platform for social infrastructure
SBB’s fourth business area, SBB Utveckling, drives value growth by developing new residential and community service properties and optimizing use of the existing portfolio. Together, the four companies form a solid strategic unit and a robust platform for social infrastructure in the Nordics.
