Castellum acquires Norrporten and carries out a rights issue as well as a directed share issue to the sellers, the Second and Sixth Swedish National Pension Funds.
 
Castellum acquires 100 the shares in Norrporten  for a cash purchase price of SEK 10.4 billion (€1.13 billion) and 23.4 million shares in Castellum.
 
To finance part of the transaction, Castellum’s Board of Directors has resolved on a fully-underwritten rights issue, conditional on approval from the extraordinary general meeting, with preferential treatment to Castellum’s shareholders as well as to call for an extraordinary general meeting to authorize the Board of Directors to resolve on an issue in kind directed to the Second and Sixth Swedish National Pension Funds.
 
The transaction in brief:
# Castellum acquires 100 percent of the shares in Norrporten and will at closing pay SEK 10.4 billion (€1.13 M) in cash and 23.4 million Castellum shares, which amounts to SEK 13.4 billion (€1,46 billion).
 
# The Second and Sixth Swedish National Pension Funds will receive a total consideration of SEK 14.0 billion (€ 1.52 billion) based on an issue price in the Issue in kind of SEK 133 per Castellum share and including a dividend of MSEK 464 (€50M) which will be distributed prior to closing.
 
# The cash purchase price will be financed by way of a fully-underwritten rights issue of SEK 6.5 billion (€0.71 billion) and SEK 3.9 billion (€0,42 billion) from unutilized existing and new interest-bearing debt facilities.

# Castellum’s pro forma property value will increase to SEK 71 billion (€7,7 M) and the annual pro forma income from property management will increase by more than SEK 900 million from SEK 1.6 billion to SEK 2.5 billion, excluding potential synergies which, on an annual basis, are estimated to amount to SEK 150 million.
 
# The Norrporten portfolio comprises 123 properties, 1 147 000 sqm in Sweden.
 
# Norrporten’s property portfolio is composed of high quality, modern and well-invested office properties in attractive locations in each market.
 
# The acquisition strengthens Castellum’s presence and market position in Stockholm, Copenhagen, Helsingborg, Örebro and Jönköping.
 
# The acquisition will result in Castellum making sizeable entries with attractively
located properties in Gävle, Sundsvall, Östersund, Umeå, Luleå and Växjö.
 
”The acquisition of Norrporten is a strong move forward in Castellum’s long-term growth strategy. Norrporten has an attractive property portfolio that complements Castellum’s existing portfolio in growth markets around Sweden and Denmark, and which adds properties in a number of new markets where Castellum is not already present. Through the acquisition, we fortify our position as one of Sweden’s leading property developers and managers with a focus on remaining local and close to our customers. Our objective will continue to be an annual growth in income from property management of 10 percent at maintained low financial risk. We look forward to continue to deliver value to our shareholders with Norrporten onboard”, says Henrik Saxborn, CEO Castellum.
 
“We are proud of Norrporten’s development since 2001. Through the sale to Castellum, the company will receive the best possible conditions for continued development. The Second Swedish National Pension Fund has been an owner of Castellum since 2002 and we are positive to increasing our ownership in Castellum through the transaction. For the Second Swedish National Pension Fund, the transaction will result in us taking a further step in our management strategy of, over time, increasing the share of property investments in other markets”, says Eva Halvarsson, CEO of the Second Swedish National Pension Fund.
 
“Castellum is a good buyer of Norrporten and we are glad to be able to present this transaction. Castellum and Norrporten have complementary property portfolios and together they become a strong company in the Nordic property market. We are positive to become shareholders in Castellum and expect a continued long-term positive development for the combined company”, says Karl Swartling, CEO of the Sixth Swedish National Pension Fund.