Castellum has completed an exchange transaction with Fastighetsaktiebolaget Lilium, wherein Castellum will acquire six properties in Linköping, and sell twenty properties in Sundsvall. Vacancy/Occupancy dates occur March 1, 2019.
“Linköping is an attractive regional city where we’d like to grow and develop our product offers. This transaction makes us one of the two largest players in town, and moreover, the deal provides building-rights possibilities in the city. With us as a partner, both existing and new customers can grow and develop their businesses as well”, says Henrik Saxborn, Castellum CEO.
The six properties in Linköping comprise 67,000 sq.m. of office space, centrally located in the vicinity of Castellum’s existing office buildings in the city. Acquisition price amounted to SEKm 1,638 including costs and assessed deferred taxes of SEKm 87. Fully leased, rental income is calculated to amount to approx. SEKm 110. Economic leasing rate is currently 98 %, and the average remaining contract duration is 2 years. The sale is being conducted at a yield of 4.8% of the current operating net, after administration costs.
Sales price for the Sundsvall properties, which comprise 157,400 sq.m. of office space, amounted to SEKm 3,321 after deduction for costs and assessed deferred taxes of approx. SEKm 135. Underlying real estate price thereby amounted to SEKm 3,456, in line with the most recent valuation. The sales transaction was conducted at a yield of 5.0% of the current operating net, after administration costs. Financial results will also be affected by a devaluation for goodwill of approx. SEKm 180, plus deferred tax revenues of approx. SEKm 350. All employees in each respective area will retain their current employment and will report to the new owners. Castellum has binding union agreements and the company is taking part in relevant dialogues.
“This deal signifies that we’re concentrating our portfolio to stronger growth sectors and areas. Castellum’s portfolio continues to comprise the largest listed Offices portfolio, and one of the absolute biggest Logistics portfolios in Sweden. It’s a cornerstone of our long-term strategy to continue to grow and enhance the quality and density of our portfolio through projects as well as acquisitions”, says Henrik Saxborn, Castellum CEO.
Summary of the sales transaction:
Castellum sells its portfolio of 20 properties in Sundsvall: Hovrätten 2, Måsen 14, Järnvägsstationen 2, Idrottsparken 2, 3, Borgaren 3, Byggmästaren 2, Guldsmeden 15, Herkules 2, 8, 9, Neptunus 5, Notvarpet 8, Nyttan 3, 6, Nyttan 7, Olympen 4, Stadshuset 2, Stuvaren 1, Tullpaviljongen 1.
Purchaser: Fastighetsaktiebolaget Lilium
Net sales price: SEKm 3,321
Vacancy date: March 1, 2019
Average remaining contract duration: 4.0 years
Rental income: SEKm 258
Major tenants: Försäkringskassan, Bolagsverket
Leasable area and leasing rate, respectively: approx. 157,400 sq. m. leasable area, 94 %
Summary of the acquisition:
Castellum acquires 6 properties in Linköping from Lilium: Amasonen 3, Ambrosia 6, Blandaren 18, Dalkullan 19, Djäknen 7, Duvan 18
Net acquisition price: SEKm 1,638
Occupancy date: March 1, 2019
Average remaining contract duration: 2.0 years
Rental income: SEKm 110
Major tenants: Skatteverket, Länsstyrelsen
Leasable area and leasing rate, respectively: approx. 67,000 sq. m. leasable area, 98 %
This information is information that Castellum is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out below, on January 18, 2019, at 3.30 p.m. CET.
For further information contact:
Henrik Saxborn, CEO, Castellum AB, 031-60 74 50
Ulrika Danielsson, CFO, Castellum AB, 0706-47 12 61
Castellum is one of the largest listed real estate companies in Sweden. Property values amount to SEK 87.5 billion and holdings comprise office, warehousing/logistics and public sector properties, covering a total leasable area of 4.4 million square metres.
The real estate portfolio is owned and managed under the Castellum brand through a decentralized organization with strong and clear local presence in 20 cities in Sweden and also in Copenhagen and Helsinki.
In 2018, Castellum received two awards for sustainability efforts; designated Number One in the world by GRESB for the offices-and-logistics sector, as well as the Level Gold award for sustainability reporting from the EPRA (European Public Real Estate Association). In addition, Castellum is the only Nordic real-estate and construction company elected to the Dow Jones Sustainability Index (DJSI), joining a select group of companies in the world who perform best on sustainability issues.
The Castellum share is listed on Nasdaq Stockholm Large Cap.
Castellum AB (publ), Box 2269, SE-403 14 Gothenburg | Corp Id no SE 556475-5550 | Phone +46 (0)31-60 74 00
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