Heimstaden Bostad, a subsidiary of the real estate company Heimstaden, owned by the 50% owner of Servatur, can protect its investment grade credit rating without having to request new capital from existing shareholders. The Fitch or Standard & Poors agencies consider debt junk bond. On June 3, Heimstaden Bostad AB canceled a portion of senior unsecured low floating rate bonds worth €6,5 million, NOK 72 million.
The maturity date of the NOK Bonds was June 7, 2024, and the cancellation of the NOK Bonds is in accordance with the terms and conditions of the NOK Bonds. After this cancellation, the total nominal amount remaining in the NOK Bonds is NOK 72 million. Earlier in March, Fitch downgraded Heimstaden Bostad's long-term issuer credit rating to 'BBB-' from 'BBB' and assigned a negative outlook.
Although this has nothing to do with origin, it should be noted that already in the Last audit that E&Y did on Servatur there was some reservation about the lack of own working funds that the shareholders admitted but apparently without risk. The operation in the south of Gran Canaria with the Casablanca complex, which benefits from incentives from Brussels, is being carried out without errors.
To address this situation, the company that owns Servatur 50% intends to complete a sales plan in which it will sell residential apartments worth 1.798 million euros, that is, 20.000 billion Swedish crowns until 2025. It is already on the way to reach the sales target of SEK 2.400 billion during the first half of this year. It is mainly about the sale of apartments in the Netherlands and Denmark. In the future, Heimstaden Bostad also intends to put units up for sale in Norway and Germany. At the moment nothing is sold in the Canary Islands. Fitch downgraded Heimstaden Bostad's credit rating in March to one level above junk status, with a negative outlook. With this, they equaled the rating of another credit house, Standard & Poors.
