Castellum has completed an exchange transaction with Klövern which comprises the acquisition of 14 properties in Borås, and the sale of 9 properties located in Mölndal and Partille. Buyer possession date/vacant possession date will be April 1, 2017. Conclusion of the deal means that Castellum becomes the largest private owner of commercial properties in Borås.
Acquisition price amounted to approx. SEKm 480 including transaction costs. Sale price was approx. SEKm 497 after deduction for transaction costs . Sale price is just over Castellum´s latest property valuation.
The acquisition in Borås covers a total area of approx. 81 thousand sq. m., and primarily consists of office and storage/logistics space.
Castellum’s portfolio in Borås now increases by 80%, to a total of 185 thousand sq. m. The vacancy rate in Borås has generally decreased in recent years, and rents are rising. The municipality is experiencing a continuous influx of people, and is now being assessed as a major growth area.
Castellum will assume responsibility for Klövern's Borås employees, and thereby benefit from their local expertise.
The divested properties in Partille and Mölndal cover a total 38 thousand sq.m. of office premises. This means that Castellum has withdrawn from the Partille market. Responsibility for Castellum’s Mölndal portfolio will be relocated, as a Castellum office presence in Mölndal will be discontinued. Investments in the area will be concentrated to new projects with high-growth possibilities in the Åbro area.
“This exchange transaction is part of our ongoing redistribution towards a higher quality portfolio, adding value through developmental projects and an increased density in clearly defined growth areas”, says Henrik Saxborn, Castellum CEO.
“We’re now achieving a greater role in the Borås market, which has become even more attractive through qualitative city development, expansion of the university, a steady influx of people and the fact that good and solid transportation channels to and from Gothenburg have been further reinforced”, continues Saxborn.
Summary of Exchange Transaction:
Acquisition price: approx. SEKm 480 including transaction costs.
Date for change of possession: April 1, 2017
Lettable area and occupancy rate: approx. 81 thousand sq.m, with a leasing rate of approx. 86%
Properties included in the acquisition:
Borås - Ekholma 7, Gjutaren 10, Grävlingen 5, Katrinedal 2, Katrinehill 8, Muttern 3, Laxöringen 1, Milen 7, Muttern 2, Niten 6, Näckrosen 3, Raklinjen 2, Rotorn 3, Uranus 16.
Average remaining contract duration: 2.5 years.
Rental value: approx. SEKm 54.
Major tenants: Friskis & Svettis, Vattenfall, Tools, Unigraphics and Region Västra Götaland.
Sales price: approx. SEKm 497 after deduction for transaction costs.
Date for change of possession: April 1, 2017
Lettable area and occupancy rate: approx. 38 thousand sq. m. with a leasing rate of just over 94%.
Properties included in the sale:
Mölndal – Pottegården 4, Pottegården 2, Mejramen 1, Ängsviolen 1.
Partille – Kåbäcken 11:7, Ugglum 126:4, Partille 4:2 & 4:25, Ugglum 8:92, Ugglum 8:37.
Average remaining contract duration: 1.9 years.
Rental value: approx. SEKm 42.
Major tenants: ABB, Rusta, Vestia Construction Group, Midroc and Kollmorgen.
For additional information, please contact:
Ulrika Danielsson, CFO, Phone +46-31 60 74 74
Castellum is one of the major listed real estate companies in Sweden. The fair value of the real estate portfolio amounts to approx. SEK 71 billion, and comprises of commercial properties for office, retail, warehouse and logistics with a total lettable area of approx. 4.3 million sq.m.
Castellum own and manage properties through one common brand in five geographical regions with strong local presence. The five geographical regions are: Central, North, Stockholm, West and Öresund.
In 2016, Castellum sustainability performance was awarded two top distinctions: First Prize for sustainability reporting in Europe from EPRA and Global Sector Leader, handed out by GRESB which means that Castellum is ranked first in the world within the office- and industrial-properties sector. Further Castellum has been selected as an index component of the Dow Jones Sustainability Indices (DJSI), which includes the companies in all industries in the world with best performance in terms of sustainability.
The Castellum share is listed on Nasdaq Stockholm Large Cap.
Castellum AB (publ), Box 2269, SE-403 14 Gothenburg | Org nr/Corp Id no SE 556475-5550 | Phone +46 31 60 74 00 Fax +46 31 13 17 55