Castellum is building a new Nordic head office for Eon, to serve as the workplace of approx. 1,500 employees in the Nyhamnen district, located near Malmö's Central Station. Skanska is the procured entrepreneur for the project.
"In these times of concern caused by the Covid-19 virus, it feels gratifying to continue investing in important city-development projects such as Eon's new headquarters. This project is Castellum's largest ever and it will strengthen both our cash flow and balance sheet with a long leasing contract and a solid customer. Along with our equally large upcoming project, the new Swedish National Courts Administration building right across the street, the E.ON headquarters will further consolidate our position as a long-term city developer in central Malmö," says Henrik Saxborn, CEO at Castellum.
The planned new building in Nyhamnen comprises approx. 27,000 sq.m. leasable area, of which Eon rents about 24,000 sq.m. Construction is scheduled to begin in the second quarter of 2020, and preliminary occupancy is planned for the first quarter of 2023. The leasing agreement between Eon and Castellum amounts to 12 years and corresponds to an annual rental value of SEK 70 million, which will be reported with net rental for 2020. The remaining vacant area of 3,000 sq.m. corresponds to an economic vacancy rate of 9 percent and for these areas there are ongoing negotiations. Castellum intends to finance the investment with existing operating income as well as unutilized credits.
In Nyhamnen, Castellum is also planning to develop a new Swedish National Courts building, which will house the Malmö District Court, Malmö's Administrative Court, and the Malmö Regional Tenancies Tribunal. Fully constructed, the area will grow into a dense, mixed-commerce city district, containing close to 13,000 new workplaces and 6,000 residences.
Both Eon and Castellum want to construct an office building which is extraordinary from a sustainability perspective. This should permeate all aspects of the project, such as construction methods, choice of materials and energy solutions. The new construction will therefore be certified in compliance with the highest of certification levels, BREEAM Outstanding, as well as the Well Building Standard. The latter places unique demands related to the health and wellbeing of people who work in the building.