“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 MSEK 1,638 including costs and assessed deferred taxes of MSEK 87. Fully leased, rental income is calculated to amount to approx. MSEK 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 MSEK 3,321 after deduction for costs and assessed deferred taxes of approx. MSEK 135. Underlying real estate price thereby amounted to MSEK 3,456, in line with the most recent valuation. The sales transaction was conducted at a yield of 5.0 percent of the current operating net, after administration costs. Financial results will also be affected by a devaluation for goodwill of approx. MSEK 180, plus deferred tax revenues of approx. MSEK 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: MSEK 3,321
Vacancy date: March 1, 2019
Average remaining contract duration: 4.0 years
Rental income: MSEK 258
Major tenants: Försäkringskassan, Bolagsverket
Leasable area and leasing rate, respectively: approx. 157,400 sq. m. leasable area, 94 percent

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: MSEK 1,638
Occupancy date: March 1, 2019
Average remaining contract duration: 2.0 years
Rental income: MSEK 110 
Major tenants: Skatteverket, Länsstyrelsen 
Leasable area and leasing rate, respectively: approx. 67,000 sq. m. leasable area, 98 percent

Pangea Property Partners has been the sole advisor in the transaction.