The shopkeeper reduces the value of the Heimstaden investment – E24

Swedish pension fund Alecta has written down the value of its investment in Heimstaden Bostad by approximately nine billion Swedish krona. As a result, 25 percent evaporated last year.

Alecta has written down the value of its investment in Ivar Tollefsen-dominated housing giant Heimstaden Bostad by an additional 8.7 billion Swedish krona, or 18.8 percent.

Alecta therefore reduced the value of the investment by SEK 12.7 billion, equivalent to 25 percent, in 2023.

It appears from Press release on Alecta's 2023 annual results Wednesday.

“Heimstaden Bostad, Alecta's largest single commitment with investments of approximately SEK 50 billion, was negatively affected by rising interest rates. This resulted in a significant decline in the value of Alecta's stake in the company.”

Of the 8.7 billion reductions, 2.1 billion are due to a 4.5 percent decline in Heimstaden Bostad's net asset value, and 6.6 billion to a 15 percent discount on Alecta shares based on an independent market valuation at the turn of the year. year, according to the company.

– A crisis of confidence

Alecta also lost heavily on the company's investments in US specialty banks.

The pension fund lost its investment of SEK 20 billion when Silicon Valley Bank, Signature Bank and First Republic Bank collapsed.

– 2023 was a very turbulent year which created a major crisis of confidence for Alecta. We have implemented many measures, but we are fully aware that it will take time and hard work to regain customer trust, says Alecta CEO Peder Hasslev in today's message.

The biggest investment

In recent years, Alecta has invested a total of SEK 49 billion in Heimstaden Bostad, the largest single investment of a pension fund.

In the wake of rising interest rates and declining real estate values, the fund was forced to write off several billion dollars of its investments, and expects more writedowns.

It later emerged that former Alecta employees who played a pivotal role in the investments today work for or with Ivar Tollefsen.

Since taking office last fall, Haslev has conducted a full review of the investment in Hemstaden Bøstad, with internal and external investigations, which in turn led to an investigation by Swedish organization Ecocrime, following a report from the Financial Supervision Authority. .

– “This is an investment that Alecta should not make,” said the Alecta manager. Industry today in September.

– Low impact

The central shareholder agreement is secret and controversial.

Haslev believes the agreement is too “lopsided” and that Alecta is being paid too little for the risks the company takes, as well as having “too little” influence, he told DI.

– We will do everything we can to improve conditions – everything, he told the Swedish newspaper.

The Alecta boss also noted that any financial support for Heimstaden Bostad in the refinancing would depend on the circumstances.

No changes

Ivar Tollefsen has been publicly open to discussing the shareholders agreement.

It has also been announced that Heimstaden AB will be able to reduce its shareholding.

Heimstaden Bostad denies to E24 that changes have since been made to the shareholders agreement.

– In the last quarter, there were no changes in the ownership structure of Heimstaden Bostad or in the shareholders agreement, communications director Christian Dreyer of Heimstaden Bostad tells E24.

Transferable shares

The Shareholders' Agreement also forms the basis for the ongoing acquisition by Heimstaden AB and the institutional shareholders of ordinary shares and preference shares.

As of the end of 2023, Alecta has increased its equity stake to 39.4 percent, from 38 percent in the third quarter, while the stake of Tollefsen-controlled Heimstaden has been reduced from 38 percent to 34.8 percent. Voting shares remained unchanged at 30.4 and 50.1 percent, respectively.

Heimstaden Bostad defines equity stake as each shareholder's share of the company's valuation, which is adjusted quarter by quarter. It is also the capital stock mentioned in Overview of the company's shareholderswhile the underlying ownership stakes are unknown.