SBB Norden - comment
A Swedish media report claims that the Resi business will announce an IPO shortly. Given the quiet IPO market, we would be surprised if this route is favoured over a part sale to a strategic partner. If SBB Norden can get an IPO away in 2024, it will be an impressive performance, but the devil will be in the detail of how much cash SBB Norden can extract and how much it will cost relative to the book value of the assets. However, executing the sale of a majority stake in Resi will be needed to cover SeK5.7bn in bond maturities in the next 12 months.
The sale will also be an important step in SBB Norden becoming a holding company for equity stakes and a modest income stream from property management.