JLL acts as placement agent and financial advisor to JM in the creation of a residential JV company
JLL has advised JM AB (publ) in the establishment of a new joint venture company and has acted as placement agent in the process of raising institutional equity and debt financing. The motive behind the formation of the new company is to create a capital-efficient structure for long-term ownership and management of completed rental properties and thereby enable JM to increase its investment in the development of rental housing.
JM has entered into an agreement with the Swedish Foundation for Strategic Research and the Knowledge Foundation to create a joint venture for long-term ownership of rental properties that are primarily on land with leasehold rights. Initially as a first step, JM is transferring rental properties with a market value of SEK 1,060 million. JLL has assisted JM in raising institutional equity capital, procuring debt financing and structuring the transaction.
- “We are very pleased that we have successfully created together with the Swedish Foundation for Strategic Research and the Knowledge Foundation a structure that unites JM’s business model for developing residential units with a responsibility for long-term management of rental units in a way that is advantageous for society,” says Mikael Åslund, business unit manager for JM Property Development.
JM is responsible for the operations of the company and the properties, as well as the development of new properties that will be placed in the new company in the future. The company’s first investment consists of 418 rental units, which consist of the following assets:
- Leasehold rights to the properties Stockholm Träsliperiet 6 and Stockholm Stämplaren 5
in Stureby, Stockholm, totaling 187 rental units
- Leasehold rights to the properties Stockholm Gröna Rutan 3 and Stockholm Gustafs Skål 1
in Bredäng, Stockholm, totaling 138 rental units
- Leasehold rights to the property Sicklaön 40:21 in Sickla, Nacka, totaling 93 rental units.
“We are proud to have been trusted by JM to advise on the establishment of this new residential structure. We see these foundations as ideal partners for JM and that this new vehicle provides an attractive and long-term investment opportunity for the foundations”, says Filip Sköldefors, Head of Living Capital Markets, JLL Sweden.
“This corporate finance deal is a good example of JLL's focus on more financially driven advisory services, where we on this deal have assisted in raising both equity and debt financing. The deal further demonstrates JLL's leading position within the Living segment”, says Linus Ericsson, CEO of JLL Sweden.
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