As part of Castellum’s strategy, its development portfolio is improved through new construction. In this context, owning development rights in attractive locations with local zoning plans already in place is a competitive advantage, as this involves the shortest possible lead time before customers can occupy the premises. At year-end, Castellum had approximately 700,000 square meters of unutilized development rights (leasable area). A number of these include finalized project plans which can be launched relatively promptly. During the year, Castellum made several major potential projects public, and these are summarized on the following pages. The projects are characterized by their location in attractive development areas, in combination with a clear sustainability focus.
Unutilized development rights are valued at MSEK 1,120 (1,154), equivalent to approximately SEK 1,600 (1,500) per square meter on average. MSEK 600 (482) of the value in the building rights is recognized as development projects and undeveloped land.
The rest are recognized among offices, public sector properties, warehouse/logistics and light industry properties since they are additions to already developed properties.
The City of Stockholm’s program work for Slakthusområdet, the former slaughterhouse district, aims at developing a lively, dynamic quarter. At Castellum, we are working on actively contributing to this, which includes continually developing our existing portfolio of four properties by adding a number of attractive and modern workplaces in pace with the development of the district. We also intend to promote cultural and architectural value.
Together with the City of Stockholm, Castellum and four other property owners are carrying out an urban development project in the Marievik district near Liljeholmen. A new detailed development plan is expected to be adopted by the City Council in the spring of 2020. In addition to a more mixed, attractive city environment, the new detailed development plan will entail future building rights in two Castellum-owned blocks, Marievik 27 and Marievik 30.
Hagastaden is a new inner-city district in Stockholm that will be completed in 2025. In the autumn of 2019, Castellum signed a partnering agreement with Einar Mattsson to jointly develop the areas of approximately 23,000 square meters in Hagastaden, for which Castellum received the land allocation agreement. All buildings, office spaces and commercial spaces are expected to be ready for occupancy in early 2025. Castellum has also come in as a partner with HSB Bostadfor a project covering two blocks in Hagastaden, in which Castellum will build, own and manage all the commercial spaces.
4. Kvarteret Korsningen, Örebro
Utopia Arkitekter has won a land allocation agreement from Örebro Municipality, next to the Resecentrum in the growing Norrcity district. Castellum has been chosen as a partner. Together, we will create approximately 6,000 square meters of offices, with a high degree of architectural ambition, in Örebro’s first office building made of wood.
5. Hissmontören 4
Castellum has acquired Hissmontören 4 building rights and project, which we have chosen to call Källeruds Park. We will build a three-story, 3,400 square meter office building here, with the unique combination of a park environment within walking distance of the city. The building will be very space-efficient and flexible. Each floor can be divided among up to six different tenants.
6. New Nordic head office, E.ON
Both E.ON and Castellum want to build an office building that, from a sustainability perspective, is extraordinary. This perspective will permeate all aspects of the project: construction management, choice of materials and energy solutions. The new construction will be certified under the highest environmental certification level, and in accordance with the WELL building standard. The latter places unique demands on the health and well-being of people at their work.
7. The Swedish Courts
The Swedish National Courts Administration has investigated various alternatives for the potential location of premises for the Malmö District Court and the Administrative Court in Malmö. The choice fell on Castellum’s proposal for new, more spacious premises in the Nyhamnen district of Malmö, centrally located near the central rail station, and a lease has been signed between the Swedish National Courts Administration and Castellum, who will begin the new construction of a modern 25,000-square-meter court building. The investment, estimated at approximately SEK 1.2 billion, comprises a key element of Castellum’s strategy for further growth in the Öresund region. Nyhamnen is one of Malmö’s most important regions for development, and Castellum is also building a new head office for the energy company E.ON here.
The court property will be one of northern Europe’s largest workplaces for lawyers, and one of Castellum’s largest construction projects ever. It will be certified under Miljöbyggnad Gold level.