Vacse Plans First-Ever Bond to Expand in Swedish Properties

Vacse, a property investor tied to some of Sweden’s largest companies, plans to sell its inaugural bond as early as next week as part of a plan to make the capital markets its main source of funding.

The senior unsecured bond will be sold under Vacse’s 3 billion-krona ($453 million) medium-term note program and will be used to expand investments in properties as well as replace a bridge loan, Chief Financial Officer Christian Haglund said in interview in Stockholm yesterday.

“The plan is to make the bond market Vacse’s primary financing source,” Haglund said.

The company currently has a bridge loan of 1.05 billion kronor, according to presentation material for investors.

Vacse was founded in 2009 by the pension foundations of Apoteket, Atlas Copco AB, Ericsson AB, Sandvik AB, Skanska AB Stora Enso Oyj and Volvo AB and invests in public properties such as schools, court and police buildings and real estate housing government authorities, municipalities and counties. Vacse today owns properties valued at 3.8 billion kronor.

Vacse is rated BBB+ at Nordea and BBB at SEB, with a stable outlook at both banks, which together are leading the sale. Nordea’s rating reflects Vacse “growing holding of prime public properties, strong base of public tenants, very long lease maturity profile, zero vacancies and solid shareholders,” according to a note published on May 19.