Aros Bostad and ALM Equity forms a leading residential developer in the Greater Stockholm area

The project portfolio from ALM Equity complements Aros Bostad’s building rights portfolio regarding both geography and product. The deal, which embraces more than 30 project opportunities, would add a number of new municipalities within Aros Bostad’s defined home market. The building rights, which are split between future development projects and tenant ownership projects in the near term, consist of ca 50 percent building rights for detached and terraced houses which is in line with the strategy in Aros Bostad’s new business plan.

Due diligence has been initiated and is estimated to continue during the second quarter of 2022, followed by a binding agreement. Handover is estimated to the beginning of the third quarter of 2022. With a completion of the deal, the payment will be made through a non cash issue, which means that Aros Bostad will get ALM Equity as new major owner.

Magnus Andersson, CEO Aros Bostad:
”With the contribution of ALM Equity’s project portfolio we will take another big step on our growth journey and become one of Greater Stockholm’s largest residential developers. Our strong balance sheet gives us opportunity for further growth and the portfolio from ALM Equity is a great complement to our existing portfolio in both product, time and geography. Since we are having a large residential rental portfolio on the market for sale, we have created room for further project starts. ALM Equity is a strongly capable and experienced developer on the Swedish residential market and would be a highly appreciated new major owner of the company.”       

Joakim Alm, CEO ALM Equity:
“We have found a perfect match for our building rights portfolio in Aros Bostad. By converting the building rights to owner shares in a listed company, we make the underlying values in ALM Equity more visible. For ALM Equity it is important to continue to create value and we identified the opportunity for further value creation in Aros Bostad. We see a great potential in the business and will be an engaged and active owner.”

Catella has acted as adviser throughout the business deal.

Aros Bostad is listed on Nasdaq First North Growth Market and the Certified Adviser is Erik Penser Bank. Financial information in English at https://arosbostad.se/investerare/in-english/

This disclosure contains information that Aros Bostadsutveckling AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 16-05-2022 08:00 CET.