The acquisition comprises two office properties at Lilla Bommen 5 and 6, with a total leasable area of approx. 16,595 sq.m. Acquisition price amounts to MSEK 867 (EUR 82M), including transaction costs. The office premises at Lilla Bommen 5 and 6 are located adjacent to Castellum’s existing office property at Lilla Bommen 4A-B.
“Every day, 250,000 people go to work in our buildings. We strive continuously to develop workplaces in central locations, where companies and people can prosper. We envision strong development potential at Lilla Bommen and the acquisition further strengthens our position in the Gothenburg inner city”, says Henrik Saxborn, Castellum CEO.
Lilla Bommen enjoys a very attractive and central office location by the Göta River, with proximity to both Nordstan shopping centre and the Gothenburg Central Station. Significant infrastructure activities are taking place in the vicinity, and these will completely merge Lilla Bommen with the inner city, as the current traffic barrier formed by the E45 highway will be relocated underground. Preparation has already begun for one of the three West Link train stations, which will also be situated in Lilla Bommen.
“The infrastructure drive currently taking place at Lilla Bommen will result in an even more attractive area in the future, as it’s creating a more central and vastly more accessible location”, says Henrik Saxborn.
The acquisition will be financed through earned corporate income and unutilized credit facilities.
Summary of the transaction:
Castellum acquires the Gullbergsvass 1:2 and Gullbergsvass 1:12 properties
Seller: Gamla Livförsäkringsaktiebolaget SEB Trygg Liv (publ)
Acquisition price: MSEK 867, including costs
Occupancy: March 1, 2019
Average remaining contract length: 2.2 years
Leasing value: Approx. SEKm 43
Major tenants: Manpower, Capio, Cerner
Leasable area and leasing rate: Approx. 16,595 sq.m, with an economic leasing rate of 100%