May 25 (Reuters) - SBB said on Saturday it is

forming a joint venture with U.S.-based private credit firm

Castlelake, its second in about three months, which will help

ease the Swedish real estate group's debt woes.

Under the deal, SBB and funds managed by Castlelake have

signed a loan agreement of 5.7 billion Swedish crowns ($534.36

million). The joint venture will use the funds to acquire

properties from SBB, refinance debt to the Swedish firm and also

certain external debt, according to an SBB statement.

Atlas SP Partners will be part of the lenders, it said.

The portfolio will be operated through a management agreement

with SBB from which the properties are being acquired for 9.5

billion Swedish Crowns, the market value as of March 31, 2024,

it added.

SBB and Castlelake signed a similar deal in February for

another joint venture to receive a loan of 5.2 billion Swedish

crowns.

SBB announced in March it is buying back its debt at a

discount of 60% compared to their original value, in an attempt

to calm investors' nerves as it scrambles to tackle a

multi-billion debt pile.

The Swedish landlord predicted earlier this month that

financing conditions would improve as it was making further

write downs on the value of its properties.

($1 = 10.6669 Swedish crowns)

(Reporting by Urvi Dugar in Bengaluru; Editing by Chris Reese

and Muralikumar Anantharaman)