Aker Property Group Expands Its Portfolio with Strategic Acquisitions

Aker Property Group (APG), a fully-owned subsidiary of Aker ASA, has recently announced a pivotal move to enhance its investment strategy by acquiring significant ownership interests in Public Property Invest ASA (PPI) and Samhällsbyggnadsbolaget i Norden AB (SBB). This announcement, made on May 13, 2025, showcases Aker's ongoing commitment to effective portfolio management and strategic growth in the Nordic real estate market.

Transaction Overview

The acquisition involves a substantial industrial property portfolio valued at NOK 2.325 billion, which was previously owned by TRG Real Estate AS, an entity under the control of Kjell Inge Røkke, who also serves as the Chair of Aker ASA. As part of the agreement, TRG will sell the industrial property portfolio to PPI in exchange for 124,398,074 new ordinary shares priced at NOK 18.69 each. Furthermore, TRG will transfer rights to receive shares to SBB I Norden AB, which is a wholly owned subsidiary of SBB.

Upon finalizing this deal, Aker Property Group will emerge as the second-largest stakeholder in PPI, holding approximately 24.58% of the company's shares and voting rights. Additionally, Aker will hold about 9.08% of the share capital and 4.44% of the votes in SBB, allowing the company to significantly influence PPI's growth trajectory.

PPI, which specializes in owning, operating, and developing socially critical infrastructure properties in prime locations across Norway, is poised to benefit from Aker's substantial investment. This is particularly pertinent as PPI has continued to demonstrate impressive operational performance since its initial public offering in 2024, evidenced by its recent achievement of a BBB Investment Grade rating and the initiation of regular dividend payments.

Strategic Rationale

According to Øyvind Eriksen, President and CEO of Aker ASA, the acquisition aligns well with Aker's long-term strategy to condense its investment portfolio to fewer, cash-generating assets. He characterized PPI as a solid company endowed with a robust management team and a diversified portfolio aimed at pursuing value-accretive growth strategies. The predictable nature of PPI's dividend payouts also fits neatly into Aker's plans to bolster its real estate investment exposure.

Moreover, PPI’s enduring strategy focuses on the acquisition and development of properties that serve public tenants, particularly in vital community segments across the Nordics. Through the acquisition of the industrial property portfolio, the company plans to launch a new infrastructure segment catering to high-quality assets that align with its existing properties, thereby enhancing stability and optimizing cash flow.

Future Outlook

This transaction heralds a new chapter for PPI, enabling them to establish a distinct business segment dedicated to critical industrial infrastructure. André Gaden, CEO of PPI, expressed excitement about having Aker join as a strategic long-term investor, emphasizing Aker’s potential support for PPI's growth plans.

In conjunction with this transaction, Aker intends to nominate Jens Jalland, CEO of Aker Property Group, to join the Board of Directors at PPI. This move underlines Aker's commitment to providing strategic oversight and value guidance as it seeks to enhance PPI's market position.

Financially, the deal underscores Aker's dedication to supporting SBB's strategic adjustments aimed at simplifying corporate structures, lowering debt ratios, and enhancing net asset value. SBB’s Chairman, Lennart Sten, expressed enthusiasm regarding Aker’s long-term interests and pledged collaboration for mutual advancement of earnings and structural improvements.

Conclusion

This acquisition not only represents a significant milestone for Aker Property Group but also reflects a broader trend in the Nordic real estate market toward consolidation and strategic investments in essential infrastructure. With Aker’s influence and expertise, both PPI and SBB are well-positioned to enhance their operational efficiencies and financial health in the coming years.