Castellum acts from a long-term perspective; its strategy for growth includes continually refining and developing its property portfolio by investing in new construction, extensions and reconstructions, as well as making new acquisitions.
The purpose of the investments is to improve cash flow, thereby increasing the value of the properties. New projects are gradually added through acquisitions of both development properties and unutilised building rights.
Castellum continually develops its property portfolio, which also includes divestments, in order to strengthen its position as the leading player in Nordic growth cities. One excellent example of this is Castellum’s announcement in late 2020 of the sale of a mature, stabilised asset portfolio, consisting primarily of properties in warehouse/logistics of various ages, to Blackstone for net proceeds of approximately SEK 18.1 billion, less expenses and deferred tax of approximately MSEK 900. The sale was divided into two tranches:
- Portfolio No. 1, with a net sale price of approximately SEK 5.0 billion and a valuation at year-end of approximately SEK 4.8 billion, with hand-over in early February. In conjunction with the sale, deferred tax income of MSEK 600 will be recognised. The transaction was contingent upon approval by the Swedish Competition Authority, which was received in January 2021, and will thus be recognised as sold in Q1 2021.
- Portfolio No. 2, with a net sale price of approximately SEK 13.1 billion and a valuation at year-end of approximately SEK 12.7 billion, with hand-over in late March or early April. Deferred tax income of approximately SEK 1.8 billion would have been recognised in conjunction with the sale. The transaction was contingent upon both approval by the Swedish Competition Authority (received in January 2021) and the successful acquisition of Entra (offer withdrawn in February 2021).
Castellum also carried out several acquisitions and occupancies in 2020.
In May, a deal was struck with SBB in which Castellum acquired a central office property in Malmö for MSEK 216, which is being let in its entirety by the Swedish National Courts Administration. With this deal, Castellum created continued development opportunities in central Malmö, since the Swedish National Courts Administration will occupy Castellum’s project in the Nyhamnen district in 2022. During the spring, a strategically located logistics property was also acquired for MSEK 35 in the same district, where further development is planned.
In November, the Lindström Invest property company in Helsinki was acquired. Its portfolio contains 36,000 square metres of modern offices in Kalasatama. The investment volume totalled MEUR 150. The transaction was completed in part as a share issue in kind.
Shortly thereafter, an additional office property was acquired in the neighbouring Sörnainen district from Capman for approximately MEUR 23.7. This illustrated Castellum’s ambition for continued expansion in the region.
In December, an acquisition in the Slakthusområdet district in Stockholm – an area under robust development – was completed. The strategically located 5,600-square metre Sandhagen 9 office property was acquired from Humlegården for MSEK 296. In early 2020, a smaller property in the same area of the City of Stockholm was also acquired and occupied, meaning that right of disposition was obtained over an entire city block. The block is being developed in close consultation with the City of Stockholm, and is expected to encompass at least 25,000 square metres of modern premises for workplaces.
Castellum has reduced its presence in Halmstad through the sales of properties in the Högskoleområdet district to Intea Fastigheter AB, which has owned the remainder of the campus for some time. The sale price of MSEK 729 exceeded the latest valuation.
A classic office building of 8,690 square metres in Västerås was acquired in December for MSEK 198. The building is located at the intersection in the very heart of the city.
In Gothenburg, Castellum concluded a transaction with the City of Gothenburg that will facilitate future urban development by selling land property to the city in exchange for a land allocation agreement in connection with the future “Station Centralen” transportation hub for Västlänken (The West Link). The building rights encompass approximately 20,000–30,000 square metres GFA for office and retail space, and will include one of the station entrances.
In 2020, Castellum completed acquisitions for MSEK 2,646 (3,350) and sales of MSEK 891 (4,138), including remuneration for an earn out of MSEK 120 that had previously not been recognised.