Landlord SBB Sells Care Home Assets to PPI for $3.4 Billion (2)

Swedish real estate firm SBB agreed to sell its portfolio of elderly and health care homes to a Norwegian group for about $3.4 billion, allowing the heavily-indebted landlord to slash its debt pile.

Samhallsbyggnadsbolaget i Norden AB, the center of a property crisis in Sweden two years ago, will now use 15 billion kronor ($1.6 billion) of the proceeds to repay several bond issues as well as loans from Castlelake LP.

“We’ll have a further 6 billion kronor of cash on closing that will also be used to pay down debt,” Chief Executive Officer Leiv Synnes said by phone. ...