(Reuters) – SBB said on Saturday it is forming a joint venture with U.S. private credit firm Castlelake, its second in about three months, that will help ease the Swedish real estate group’s debt burden.
Under the deal, SBB and the Castlelake-managed funds signed a 5.7 billion Swedish kronor ($534.36 million) loan agreement. The joint venture will use the money to acquire SBB properties, refinance debts owed to the Swedish company and also certain external debts, an SBB statement said.
Atlas (NYSE:) SP Partners will be among the lenders, it said. The portfolio will be managed through a management agreement with SBB, from which the properties will be acquired for 9.5 billion Swedish crowns, the market value as of March 31, 2024, it added.
SBB and Castlelake signed a similar agreement in February for another joint venture that would receive a loan of 5.2 billion Swedish crowns.
SBB announced in March it was buying back its debt at a 60% discount to its original value, in an effort to calm investor nerves as the company works to tackle a multi-billion dollar debt pile.
The Swedish landlord predicted earlier this month that financing conditions would improve as further write-downs on the value of his properties would take place.
($1 = 10.6669 Swedish Krona)
