Besqab was formed by the merger of Aros Bostad and Besqab, completed in March 2024. The company is one of the larger residential developers in the greater Stockholm region. It develops apartments, ranging from the premium segment down to affordable housing. Besqab operates a relatively slim organisation, working mostly with outsourced construction. Besqab’s projects are increasingly being developed on its own balance sheet, compared to in fund structures and joint ventures (as was historically the case in Aros Bostad).
As a residential developer, Besqab is exposed to several key external macro factors such as interest rates, inflation, and employment growth. There is a risk that lower and/or declining residential prices and/or construction costs lead to lower/reduced profits. Additionally, Besqab has a capital structure with interest bearing debt and preference shares, both of which require annual payments.
