(Reuters) – SBB said on Saturday it was forming a joint venture with U.S. private lending firm Castlelake, its second in three months, to help ease the Swedish property group’s debt woes.
As part of the deal, SBB and funds managed by Castlelake signed a loan agreement worth SEK 5.7 billion (USD 534.36 million). According to SBB’s statement, the joint venture will use the funds to acquire real estate from SBB, refinance debt to the Swedish firm, as well as certain external debt.
Atlas (NYSE:) SP Partners will be part of the lenders, it said. The portfolio will be managed on the basis of a management agreement with SBB, under which the properties are acquired for SEK 9.5 billion (market value as of March 31, 2024), the company added.
SBB and Castlelake signed a similar deal in February to secure another joint venture loan of SEK 5.2 billion.
In March, SBB announced it was buying back its debt at a 60% discount to its original cost, in an attempt to calm the nerves of investors struggling to cope with a multibillion-dollar debt pile.
Earlier this month, the Swedish landlord predicted financing conditions would improve as it continues to reduce the value of its properties.
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