Swedish real estate group SBB has agreed to enter into a joint venture, SBB Infrastructure AB, with U.S.-based investment manager Castlelake.
In connection with the establishment of the joint venture, SBB Infrastructure has entered into a loan agreement with Castlelake, supported by Atlas SP Partners, for approximately SEK 5.2 billion ($510 million). SBB Infrastructure will use a part of the loan proceeds to acquire properties from SBB and a part to refinance debt to SBB.
SBB Infrastructure acquires the properties at the market value as of December 2023, amounting to SEK 5.7 billion ($550 million). SBB Infrastructure will receive collateral from SBB in form of properties valued at SEK 3.7 billion ($360 million) as additional collateral to provide security for the loan, making the total pool of collateral used for the loan SEK 9.4 billion ($910 million). The community portfolio will be operated and managed by SBB Infrastructure through a management agreement with SBB.
