Following negotiations, SSM and Upland Securities have decided to terminate the Clustret project in Järfälla. As a result, a deposit of 20.0 MSEK will be repaid to SSM in January 2019. This will have an impact of -13.5 MSEK on SSM’s profits that will be charged in full to the fourth quarter 2018.
In July 2017, SSM acquired Riddersvik Fastigheter AB (Järfälla Jakobsberg 11:8) from Upland Securities AB. At the time of the transaction, the proposed project included 370 building rights to be developed into cooperative apartments. Among other things, the transaction was conditional on the municipality of Järfälla adopting a new city plan for the property as per December 31, 2018.
A total purchase price of 182.0 MSEK was to be paid once the city plan gained legal force. At the time of acquisition, SSM paid a deposit of 30.0 MSEK of which 20.0 MSEK was conditional on the approval of the city plan and the remaining 10.0 MSEK was unconditional.
The municipality of Järfälla has announced that it will stop working to develop the city plan for Järfälla Jakobsberg 11:8 and will instead integrate the property into a larger project that includes Jakobsberg’s town square and the new town hall. For this reason, the conditions for developing the property and the municipality’s intention to develop a new city plan for the property have changed.
In light of the municipality’s new strategy, SSM and Upland Securities began negotiations to continue with the project in another form, most recently to develop 200 rental apartments. The parties have not come to an agreement, which is why Upland Securities has opted to withdraw from the agreement with SSM. Consequently, the project has been terminated and the deposit of 20.0 MSEK will be repaid to SSM in January 2019. This will have an impact of -13.5 MSEK on SSM’s profits that will be charged in full to the fourth quarter 2018.
The information in this press release is such, which SSM Holding AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out below, at 10.00 CET on January 25, 2019.
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About SSM Holding AB (publ)
SSM produces functionally smart and affordable homes with attractive common areas, close to public transport and the city center for the company’s target group — the urbanites of tomorrow. The company envisions a housing market that is accessible to as many people as possible and aspires to produce 50 percent cooperative units and 50 percent rental units. SSM is the leading property developer in its niche within the Greater Stockholm area and in year-end 2018, the company has approximately 6,500 building permits in its portfolio. SSM listed on Nasdaq Stockholm (Small-cap) since April 6, 2017 www.ssmlivinggroup.se