Public Property Invest, a Norwegian property owner, is currently preparing for a potential initial public offering (IPO) and listing in Oslo. This move comes as Sweden’s SBB holds a significant 44.8% stake in the company.
SBB, also known as Samhallsbyggnadsbolaget i Norden, acquired an extensive portfolio of public property including social housing, healthcare facilities, schools, and government buildings. However, the company has faced challenges due to rising interest rates. To address this, SBB has been selling and spinning out portions of its portfolio to generate cash.
As part of the IPO process, SBB is in talks regarding the transfer of its Norwegian property portfolio and organizational assets to Public Property Invest. This planned transaction would provide Public Property Invest access to equity and credit markets, as well as facilitate achieving the desired investment grade risk level.
Leiv Synnes, the CEO of SBB, stated that the company does not intend to reduce its ownership in Public Property Invest. Instead, SBB aims to support Public Property Invest in the long term and benefit from the strong fundamentals offered by this investment opportunity.
Currently, Public Property Invest owns 48 properties across Norway valued at approximately 9 billion Norwegian kroner ($862.3 million). The majority of its rental income, around 92%, is derived from the Norwegian state or Norwegian municipalities.