The Toddler of Swedish Real Estate - A Case Study on the Founding of Studentbostäder i Sverige

Sammanfattning: This thesis presents and analyses the underlying motives of the founding of Studentbostäder i Sverige, subsequently renamed Studentbostäder i Norden, and how the deal can be value-creating for the shareholders. The three founders, SBB, Amasten, and Offentliga Hus, contributed student housing properties in exchange for shares in the new entity, thus making it a non-cash deal. The establishment of Studentbostäder i Sverige reflects the evolving landscape of niche real estate companies, increasingly characterized by innovative transactions and a focus on growth. We identify two main motives for the transaction: improving the property management efficiency in student housing and creating a platform for further growth in an attractive market. In addition, we examine potential alternative motives by levering insights from existing literature and providing evidence of valuation potentially impacting the transaction. We present literature that supports the transaction from a managerial efficiency perspective but also literature that possibly determines the transaction as value-destroying given the complexity of the deal. In summary, the study gives insight into why transactions such as the founding of Studentbostäder i Sverige take place and how they can create value.