Swedish landlord Oscar Properties’ CEO, CFO suddenly depart

TWO of the most high-ranking executives of Oscar Properties Holding are leaving the beleaguered Swedish property developer as it struggles for survival amid a dramatic financing crunch in the Swedish real estate sector.

Chief executive officer Carl Janglin and chief financial officer Magnus Thimgren said Monday (Feb 20) they will leave their respective positions after less than a year. Janglin will remain with Oscar Properties until a successor is in place.

Oscar Properties has been hit with two separate bankruptcy claims from creditors in recent weeks. In January, Janglin warned the firm may have to enter restructuring after selling a portfolio of its properties at a massive discount. On Friday, the landlord postponed its fourth-quarter earnings report until April, quoting a “number of challenges” in the period.

The volatility engulfing Oscar Properties speaks to the wider acute issue of refinancing in the highly indebted Swedish real estate sector. On Friday, unlisted firm Kvalitena was hit with its own bankruptcy claim by creditors after it failed to repay a US$76.5 million bond, with also unlisted firm Fastator announcing it would initiate negotiations for it to waive bold solidity covenants. 

Oscar Properties initially became famous in the Nordic country for its luxury developments, including several landmark buildings in the Swedish capital, has struggled for several years. Amid a previous crunch in 2022, the company shifted its focus to manage warehouses and other logistical properties. It currently owns 60 properties across Sweden with a combined value of US$510 million, according to its latest quarterly report. 

“The company has undergone an enormous transition during my short period as CEO,” Janglin said in a statement. “It feels reasonable to leave when the company’s property portfolio and organization become substantially smaller as the company enters a new phase.” BLOOMBERG