SBB divests social infrastructure real estate platform

Aker is expanding its real estate holdings by supporting a deal where Public Property Invest (PPI) will buy SocialCo, a social infrastructure portfolio worth NOK 37 billion (€3.2 billion), from SBB.

Øyvind Eriksen

This acquisition will triple PPI's portfolio value to NOK 53 billion (€4.6 billion), making it the largest listed social infrastructure real estate platform in Europe. PPI's portfolio will now include 841 properties across Norway, Sweden, Denmark, and Finland, all with long-term leases to public sector tenants.
Aker, through its subsidiary APG Invest, is investing a total of NOK 5.4 billion (€469.6 million) in PPI. This investment includes subscribing for NOK 1.3 billion (€113.0 million) in a private placement, buying NOK 4.1 billion (€356.5 million) worth of non-voting PPI shares from SBB, and exchanging some of its ordinary PPI shares for non-voting shares with SBB. After these transactions, Aker will have 33.32% ownership and 23.28% of the voting rights in PPI.
For SBB, this transaction will significantly reduce its debt and simplify its corporate structure. SBB will retain 39.99% economic ownership and 33.34% of the voting rights in the enlarged PPI, and the deal will help SBB address upcoming debt payments and focus on its core segments of education, residential, and community properties.
PPI is acquiring SocialCo, which consists of 737 properties, for NOK 34 billion (€2.96billion), which is 8% below SBB's valuation of NOK 37 billion (€3.2 billion) for these assets. The payment will be a mix of cash and new PPI shares issued to SBB. Additionally, PPI will raise NOK 3.5 billion (€304.3 million).
Øyvind Eriksen, President and CEO at Aker, said: “This is a natural step in Aker’s strategy to build a scalable platform with predictable cash flows and long-term value creation potential. Real estate is becoming a more active part of our portfolio, valued for its resilience, income profile, and alignment with our concentrated investment approach. The transaction reflects this strategy – combining scale, stability, and strategic relevance – and contributes to a portfolio that generates upstream cash flows, which are increasingly important as we invest in long-term, capital-intensive growth. Aker remains committed to SBB and PPI, and their respective strategies, underpinned by solid portfolios and long-term fundamentals.” 
The deal still requires the approval from regulators and from the shareholders of both PPI and SBB.
Once completed, the addition of the SocialCo properties will make PPI the biggest publicly traded real estate company in Europe focused on social infrastructure, boosting its presence in the Nordic countries.
Aker was advised by PJT Partners, Advokatfirmaet Bahr, and Mannheimer Swartling Advokatbyrå.