SSM Holding AB (publ) and Niam have agreed to divest SSM’s Bromma Boardwalk cooperative housing project to Niam V SIC Bostad Holding AB. The divestment follows the decision of the Swedish Land and Environment Court on December 14, 2018 to revoke the city plan for Bromma Boardwalk, leading SSM to cancel plans to develop 268 cooperative apartments on the property. The transaction will have an impact of about -15.0 MSEK on SSM’s Q3 results at the same time as it will have a positive effect of about 25.0 MSEK on the company’s cash flow in Q4 2019.
SSM Holding AB (publ) and Niam have agreed to divest SSM’s Bromma Boardwalk cooperative apartment project to Niam V SIC Bostad Holding AB. SSM acquired the project (part of the Vandenbergh 9 property) from Niam V SIC Bostad Holding AB in March 2017. The municipality of Stockholm finalized the city plan shortly after the acquisition, but the decision was subsequently overturned when neighborhood residents launched an appeal. On December 14, 2018, the Swedish Land and Environment Court revoked the city plan for Bromma Boardwalk. As a result, SSM canceled plans to develop 268 cooperative apartments on the property.
Following the court decision, SSM held discussions with Niam based on the new conditions for the project. The parties have now agreed that the project will be divested to Niam.
The divestment will have about -15.0 MSEK effect on SSM’s results for Q3 2019 at the same time as it will impact the company’s cash flow positively with about 25.0 MSEK during Q4 2019.
This information is such that 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 17:15 CEST on October 1, 2019.
For more information, please contact: ??
Chief Communications & IR Officer ???
Phone: +46 761 65 17 71???
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 apartments and 50 percent rental units. SSM is the leading property developer in its niche within the Greater Stockholm area and at end of June 2019, the company has approximately 6,200 building permits in its portfolio. SSM has been listed on Nasdaq Stockholm main list since April 6, 2017. www.ssmlivinggroup.com