DLA Piper advises Castlelake, L.P. on SEK5.7 billion loan agreement and new joint venture

DLA Piper has advised Castlelake L.P, an international alternative investment firm on the establishment of a new joint venture with Samhällsbyggnadsbolaget i Norden AB (publ) (SBB). The new venture, known as SBB Social Facilities follows the creation of another venture between the two entities in February 2024, where EUR470 million was raised.

As part of the formation of SBB Social Facilities, a loan agreement of approximately SEK5.7 billion, will allow the joint venture to acquire properties from SBB (valued at SEK9.5 billion), refinance debt back to SBB and refinance external debt. The transaction will enable SBB to pursue strategic opportunities and secure long-term liquidity. It is expected to close in June 2024 following regulatory approval.

The DLA Piper team was led by London-based partners from DLA Piper’s Finance practice, Paul Gray and Lewis Gaut while the Swedish team was led by Stockholm based Finance partner, Carl Schwieler. They were supported by a cross-jusidictional team of partners, legal directors, counsel, lawyers, senior assoicates, associates, trianees and legal assistants spanning the UK, Sweden and Luxemburg.

Paul Gray said: “This transaction, the second which DLA Piper has advised Castlelake L.P. on recently, further strengthens not only the firm’s relationship with Castlelake, but also supports our client’s relationship with SBB. With our firm’s global reach, we were able to put an international team in place to meet our client’s needs in an innovative and effective manner.”