(Bloomberg) -- Swedish landlord SBB is preparing to kick off an initial public offering for its residential unit next week in Stockholm, according to a person familiar with the matter.

Samhallsbyggnadsbolaget i Norden AB — as the company is also known — is planning to formally start the marketing of the unit’s IPO as soon as Tuesday, said the person, who asked not to be identified because the information is private. SBB Chief Executive Officer Leiv Synnes said last month that any intention to float will only cover up to 49% of the shares in the residential division, with SBB retaining the remainder.

The listing of Sveafastigheter AB forms part of a wider strategy by Synnes to split the company into three portfolios comprising of residential, community and education assets. The company has been seeking to diversify its financing and shareholder base after its share price went into freefall following a spate of credit rating downgrades last year at the height of a financing crunch in Sweden’s real estate sector.

The unit has properties worth about 27.5 billion Swedish kronor ($2.7 billion), which generated rental income of 652 million kronor in the first six months of the year, according to its latest report.

Representatives for SBB and Sveafastigheter did not immediately reply to requests for comment on the planned listing.

To boost the group’s cash position, SBB’s Nordiqus education unit is now majority owned by Brookfield Asset Management Ltd. in Canada. There have been further joint venture deals struck with Minnesota-based Castlelake LP.

Last summer, Bloomberg News reported that SBB was considering carving out the residential unit for an IPO with the company keeping a material shareholding following the listing.

The planned offering of shares in Sveafastigheter will be arranged by lead banks SEB AB and DNB Bank ASA. Representatives for both lenders did not immediately reply to requests for comment.

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