A Swedish real estate scandal brought the Sundt family down last year

A Swedish real estate scandal brought the Sundt family down last year

The Sundt Group’s value-adjusted equity through 2022 fell 12 percent to NOK 13.9 billion at the turn of the year, according to a press release sent Friday afternoon. The Group had an accounting deficit of NOK 371 million.

The year 2022 was marked by increased uncertainty in the financial markets. This uncertainty was associated primarily with the war in Ukraine, high inflation and large interest rate increases. This contributed to the decline in stock markets throughout the year, says CEO Jacob Iqbal.

The main reason for the adjusted share price decline was a 20 percent price drop for Swedish hotel real estate company Pandox, according to Sundt. Sundt notes that the hotel market has rebounded sharply after the pandemic, but the interest rate is rising and the turmoil associated with Swedish real estate companies is putting pressure on stocks anyway.

At the turn of the year, Pandox Hotels’ portfolio consisted of 157 hotels with a total market value of SEK 69.2 billion.

I inherited five billion

Iqbal mentions a fresh start to the new year for the group.

Most of the decline in value from last year has been recovered so far in 2023. So far this year, value-adjusted shares are up 12 percent, says Iqbal.

Sundt’s ownership is divided equally between siblings Christian and Helene Sundt, children of shipowner Petter C.G. Sundt, who with their cousin Morten Bergesen ran Bergesen Shipping until its sale in 2003.

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When Sundt died in 2007, the two children inherited assets worth several billion kroner, money invested in a number of properties, mainly through Sundt as.

The siblings have invested with Christian Ringnes for a number of years, with the acquisition of Pandox onwards yielding good results. Christian Ringnes is the president of Sundt as.

More investments

In addition to Pandox, the Sundt family is an active investor in the stock market, both in Norway, Sweden and Denmark.

As is known, the family was one of the investors who entered the Norwegian airline after a major restructuring, receiving almost 18 percent of the shares. Since then, Sundt has reduced its Norwegian stake, according to Holdings, and today it’s listed with more than ten percent of the shares.

The Norwegian stake is up 65 percent this year, and Sundt’s stake is worth just over NOK 1.1 billion.

Among Sundt’s other investments are Panoro Energy, Yara, Aker BP, Orkla, Idex Biometrics, Telenor and MPC Container Ships.(conditions)Copyright Dagens Næringsliv AS and/or our suppliers. We’d like you to share our statuses using links that lead directly to our pages. Reproduction or other use of all or part of the Content may be made only with written permission or as permitted by law. For more terms see here.

Dalila Awolowo

Dalila Awolowo

"Explorer. Unapologetic entrepreneur. Alcohol fanatic. Certified writer. Wannabe tv evangelist. Twitter fanatic. Student. Web scholar. Travel buff."

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