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Castellum 2021 in brief

The Nordic region’s leading commercial property company

Our rapid expansion in the Nordic region in 2021 made Castellum the Nordic region’s leading commercial property company with a property value of SEK 176 billion and a total lettable area of 6,333,000 square metres, including our holdings in Entra

Kungsleden and Castellum are being integrated, and completion is expected by the summer of 2022. The companies’ respective property portfolios complement each other well, and strengthen their positions in their respective prioritised markets. At the same time, the combination will achieve greater risk spread as a result of a broader customer base. For the purpose of facilitating focus on priority growth cities, the sale of properties in lower-priority areas is planned. The joint asset portfolio comprises primarily offices and warehouse/logistics, where the former segment has a large element of government agencies and departments.

The property industry is in a phase of change, where size together with sustainable and innovative service development is playing a greater role. A player is now being created with a property value of SEK 176 billion including Castellum’s share of Entra’s asset portfolio combined with a healthy balance sheet, which together with a maintained rating facilitates attractive financing terms and thereby strengthened competitiveness. The combined company will continue to focus on creating shareholder value and reaching Castellum’s long-term goal of increasing income from property management per share by 10% annually, while maintaining a dividend of at least 50% of income from property management.

A new, larger company will enable operational and administrative synergies and also financial synergies. The operational and administrative synergies will be found in operation, property management and development. Castellum leads in sustainable energy use and efficient property operation, which is why the combination will create conditions for implementing further reductions in operating property costs. Operations are strengthened in property management, transactions, project development and administration, while opportunities also arise to increase efficiency through exchange of know-how, efficiency enhancements and economies of scale. These synergies are expected to be realised within two to three years.

The financial synergies can be achieved by gradually refinancing Kungsleden’s outstanding loans on more favourable terms.

PROPERTY VALUE BY COUNTRY

LETTABLE AREA BY COUNTRY