Oscar Properties losses after tax widened to 1.4 billion Swedish crowns ($127.95 million) in the final three months of 2023 as the company grappled with a nationwide real estate market crisis, from a year earlier loss of 400.9 million crowns.
"We would have liked to have continued to own these properties, but our senior bank DNB wanted to have its loans repaid," CEO Carl Janglin said in a statement on Monday.
Heavily indebted property developers in Skanska s home market Sweden have faced growing problems and while a plunge in the housing market there has leveled out, construction activity related to both sectors has tumbled.
SBB, which has racked up vast debt by buying public property, said in November it was looking for equity partners to help reduce its debt, as it tries to strengthen its financial stability and streamline operations.
Riksbank: Commercial property companies ramped up borrowing when rates were low and some are now struggling to pay off or roll-over debt after eight interest rate hikes by the central bank.