Enhancement of the development portfolio

Castellum’s strategies for reaching an overall growth target of 10% include enhancing its development portfolio and creating new project opportunities through land allocation agreements and acquisition of building rights. Investments in new construction, extensions and reconstructions often result in higher yields than investments through acquisitions. Castellum has invested SEK 67 billion over the last ten years, an average of SEK 6.7 billion per year.

Castellum invested a total of MSEK 5,158 (6,112) in 2020, of which MSEK 2,646 (3,350) pertained to acquisitions and MSEK 2,512 (2,762) to new construction, extensions and reconstructions. After sales and cash settlement of MSEK 891 (4,138), net investments amounted to MSEK 4,267 (1,974).

Castellum’s investments in existing portfolios and other development projects also result in a quality shift to a more sustainable and, from a value perspective, stable portfolio, as well as increased earning power. In addition, Castellum intends to be an active player that promotes urban development and growth.

Large projects with stable tenants

For Castellum’s project developments, 2020 was a year that, despite an uncertain world, contained a large number of starts on major projects. Several of the projects started are what Castellum refers to as public sector properties, with government authorities or state agencies as tenants. In 2020, Castellum started two of the company’s largest projects ever, in the Nyhamnen district of Malmö: E.ON’s new head office and a new court building, both of which are investments totalling approximately SEK 1.3 billion. Additionally, construction began on another court building in Jönköping, an office building in Örebro (the Korsningen block) with the police as tenant, and Koppartorget 4 & 5 in Västerås, where the Swedish Social Insurance Agency will move in. Other ongoing major office projects are Kungspassagen in Uppsala and GreenHaus in Helsingborg. Major projects completed in 2020 are Emigranten in Gothenburg, Öskaret in Stockholm and the logistics project in Hisingen Logistics Park.

Sustainability a natural part of all development projects

Castellum works for the environmental certification of all its new construction projects. The most common certification is Miljöbyggnad, where new construction projects for offices are to achieve Gold level and logistics are to achieve Silver level. Other certifications exist; the E.ON project, for example, will be certified under the highest level for BREEAM. Castellum also works to create premises with a focus on health and well-being for its tenants; the GreenHaus project in Helsingborg and the Kungspassagen project in Uppsala, for example, will be certified under WELL.

Castellum has adopted a clear road map for achieving its target of zero carbon emissions by 2030 at the latest. As an initial step, emissions in project development will decrease 15% per square metre along the entire project line for new offices over MSEK 100 beginning in 2021 through 2023. Read more about Castellum’s road map in the Sustainability Policy and the target documents.

Castellum’s first climate-neutral project is the Korsningen block in Örebro, which will also be one of the pilot certifications under the new NollCO2 standard. The project is the company’s first office project with timber carcassing and timber floor elements. Preliminary calculations show that the Korsningen block reduces climate impact by approximately 40% compared with a reference construction. All certifications with a focus on the environment, health and climate are an important part of these projects and are included in the work from the very beginning. In addition to providing Castellum with future-proofing of its properties and sustainable value, the certifications allow the tenants to work in premises with less climate impact that also increase wellness among their employees.

Investments and sales per year

1. Net investment 2016
2. Acquisitions 2016
3. Sales 2016

Investments and sales by region, 2020