l{"id":1235593,"date":"2023-06-06T15:43:19","date_gmt":"2023-06-06T14:43:19","guid":{"rendered":"https:\/\/www.businesstelegraph.co.uk\/swedish-property-rescue-merger-is-best-option-for-sbb\/"},"modified":"2023-06-06T15:43:19","modified_gmt":"2023-06-06T14:43:19","slug":"swedish-property-rescue-merger-is-best-option-for-sbb","status":"publish","type":"post","link":"https:\/\/www.businesstelegraph.co.uk\/swedish-property-rescue-merger-is-best-option-for-sbb\/","title":{"rendered":"Swedish property: rescue merger is best option for SBB"},"content":{"rendered":"<p> <script async src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\"><\/script>\r\n<!-- newscabal uk text -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:inline-block;width:728px;height:90px\"\r\n     data-ad-client=\"ca-pub-8162386273903324\"\r\n     data-ad-slot=\"3688094655\"><\/ins>\r\n<script>\r\n(adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<\/p>\n<div data-attribute=\"article-content-body\">\n<p>So much for \u201cbuy the rumour, sell the news\u201d. Investors in SBB have been doing the opposite. Shares in the struggling Scandinavian real estate group soared by more than half late last week after Leiv Synnes was appointed chief executive. Claims that US distressed debt investors think the company has breached covenants did little to dent the rally. <\/p>\n<p>The company is emblematic of a deflating price bubble in Swedish residential <a href=\"https:\/\/www.ft.com\/property-sector\" data-trackable=\"link\">property<\/a>. It says covenants are intact. On Tuesday, steely-nerved investors held on to gains.<\/p>\n<p>Equity in Europe\u2019s most-shorted property company has become a binary bet on survival. SBB is seeking funds to forestall a formal restructuring of its $8bn short-dated debt pile. <\/p>\n<p>Synnes has ruled out a fire sale of assets or a rebooted rights issue. The last equity raise was scrapped after S&amp;P downgraded the company to junk status. A tie-up with Synnes\u2019 former employer,\u00a0Akelius Residential Property, may be the best option.<\/p>\n<p>SBB shares rose fivefold between 2019 and a peak in late 2021. Higher rates and falling property prices have since popped the bubble. The stock has dropped 90 per cent. SBB\u2019s equity now represents less than a tenth of its enterprise value. It has to refinance about $1bn worth of debt in the next 12 months. It had cash at hand of just $500mn in the first quarter of the year. <\/p>\n<p>Financial wonkery is helping forestall creditor pressure for repayment. SBB shifted a portion of property expenses into general and administrative costs, boosting property-level profits.\u00a0US plaintiffs are likely to pick the maths apart in court.<\/p>\n<p>A nil-premium all-share merger with Akelius would be a tidy solution. The residential landlord has low debts and is less exposed to falling continental European property prices.<\/p>\n<p>The combined pro forma loan-to-value would be in the low 40s, from SBB\u2019s current mid-50s level. At current share prices, SBB shareholders would own about 6 per cent of shares. Debtholders could avoid a hair cut.<\/p>\n<p><experimental><\/p>\n<div class=\"n-content-layout\" data-layout-name=\"card\" data-layout-width=\"fullWidth\">\n<div class=\"n-content-layout__container\">\n<div class=\"n-content-layout__slot\" data-slot-width=\"true\">\n<p><em>If you are a subscriber and would like to receive alerts when Lex articles are published, just click the button \u201cAdd to myFT\u201d, which appears at the top of this page above the headline.<\/em><\/p>\n<\/div>\n<\/div>\n<\/div>\n<p><\/experimental><\/div>\n<p><script async src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block; text-align:center;\"\r\n     data-ad-layout=\"in-article\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-client=\"ca-pub-8162386273903324\"\r\n     data-ad-slot=\"7859258044\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<br \/><a href=\"https:\/\/www.ft.com\/content\/cab3acac-6f96-41d1-86ad-f0007803c461\">READ SOURCE<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>So much for \u201cbuy the rumour, sell the news\u201d. Investors in SBB have been doing the opposite. Shares in the struggling Scandinavian real estate group soared by more than half late last week after Leiv Synnes was appointed chief executive. Claims that US distressed debt investors think the company has breached covenants did little to [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1235594,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_oct_exclude_from_cache":false,"footnotes":""},"categories":[23],"tags":[],"class_list":["post-1235593","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Swedish property: rescue merger is best option for SBB - Business Telegraph<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ft.com\/content\/cab3acac-6f96-41d1-86ad-f0007803c461\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Swedish property: rescue merger is best option for SBB - Business Telegraph\" \/>\n<meta property=\"og:description\" content=\"So much for \u201cbuy the rumour, sell the news\u201d. Investors in SBB have been doing the opposite. Shares in the struggling Scandinavian real estate group soared by more than half late last week after Leiv Synnes was appointed chief executive. Claims that US distressed debt investors think the company has breached covenants did little to [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.ft.com\/content\/cab3acac-6f96-41d1-86ad-f0007803c461\" \/>\n<meta property=\"og:site_name\" content=\"Business Telegraph\" \/>\n<meta property=\"article:published_time\" content=\"2023-06-06T14:43:19+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.businesstelegraph.co.uk\/wp-content\/uploads\/2023\/06\/Swedish-property-rescue-merger-is-best-option-for-SBB.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"900\" \/>\n\t<meta property=\"og:image:height\" content=\"506\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"businesstelegraph\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"businesstelegraph\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.ft.com\/content\/cab3acac-6f96-41d1-86ad-f0007803c461#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.businesstelegraph.co.uk\/swedish-property-rescue-merger-is-best-option-for-sbb\/\"},\"author\":{\"name\":\"businesstelegraph\",\"@id\":\"https:\/\/www.businesstelegraph.co.uk\/#\/schema\/person\/0a3a6a0f58402f1f2af94e02d0987b78\"},\"headline\":\"Swedish property: rescue merger is best option for SBB\",\"datePublished\":\"2023-06-06T14:43:19+00:00\",\"dateModified\":\"2023-06-06T14:43:19+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.businesstelegraph.co.uk\/swedish-property-rescue-merger-is-best-option-for-sbb\/\"},\"wordCount\":371,\"publisher\":{\"@id\":\"https:\/\/www.businesstelegraph.co.uk\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.ft.com\/content\/cab3acac-6f96-41d1-86ad-f0007803c461#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.businesstelegraph.co.uk\/wp-content\/uploads\/2023\/06\/Swedish-property-rescue-merger-is-best-option-for-SBB.jpg\",\"articleSection\":[\"Real Estate\"],\"inLanguage\":\"en-GB\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.businesstelegraph.co.uk\/swedish-property-rescue-merger-is-best-option-for-sbb\/\",\"url\":\"https:\/\/www.ft.com\/content\/cab3acac-6f96-41d1-86ad-f0007803c461\",\"name\":\"Swedish property: rescue merger is best option for SBB - 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