Further to the announcement made on December 18, 2020, regarding the sale of a mature and stabilized asset portfolio to real estate funds managed by Blackstone, Castellum notes that the regulatory approval from the Swedish Competition Authority has been obtained. As previously announced the sale will take place in two tranches; a first tranche, constituting 39 properties, for net proceeds of SEK 5.0 billion, expected to close on or around February 5, 2021, and a second tranche, constituting 175 properties, for net proceeds of SEK 13.1 billion, which is expected to close in the end of the first quarter or in the beginning of the second quarter 2021. The second tranche is subject to the successful completion of Castellum’s voluntary share exchange and cash offer on Entra ASA (“Entra”) as announced on December 18, 2020.

The sale of the asset portfolio creates high value for Castellum’s shareholders. The valuation of the property portfolio exceeds the most recent valuation of the properties by 20%, implies an exit yield of 4.7% and is expected to increase Castellum’s EPRA NRV by approximately SEK 8 per share upon completion of both tranches of the transaction. Following a successful combination with Entra, Castellum will in due course evaluate its capital position. If there is surplus capital, Castellum will consider a return of capital to its shareholders.

Castellum will remain an active owner in the warehouse and logistics segment and retain a dedicated asset management platform with a significant exposure to 40 warehouse and logistics assets on balance sheet and development projects, including the largest one at Castellum Säve (previously Säve Airport) with an investment pipeline of approximately SEK 10 billion. The retained income-producing warehousing and logistic portfolio represents approximately SEK 5 billion of asset value and approximately SEK 300 million in annual rental value.

Additionally, Castellum has completed a number of strategic acquisitions which anchor the company’s position as a proactive player within Swedish logistics. Recent acquisitions include the logistics hub Brunna outside Stockholm and four acquisitions of logistics properties in the expanding region of Öresund. The transactions are part of the strategy to modernise Castellum’s logistics offering and enable continued investments into the development pipeline of logistics properties.

The development projects, expected to be completed over the next several years, will provide an additional lettable area of approximately 1 million square meters, including 800,000 square meters at Castellum Säve. Castellum’s ongoing presence in the warehouse and logistics segment will provide significant future growth potential, including upside from developments.