Castellum invests SEKm 336 and sells for SEKm 23

During late 2015 Castellum AB (publ) has carried out eight investments, including two new constructions, two reconstructions and four acquisitions. Further a sale was also carried out.

“I look with pleasure on these investments with good returns for the benefit of future growth in income from property management”, says Henrik Saxborn, CEO of Castellum AB.

Fastighets AB Brostaden, a wholly owned subsidiary, started a fully leased new construction of a facility for car sales comprising approx. 2,500 sq.m. in Smista area, close to Kungens kurva in Huddinge. The area has since the millennium developed to the Stockholm region's leading cluster for car sales where Brostaden now strengthens its position. The investment is calculated to SEKm 66, of which SEKm 5 refers to own land and the new building is expected to be completed during the fourth quarter of 2016. A twelve-year lease covering the entire facility was signed with Bilia Center Stockholm AB, a distributor of Lexus. Rental income is estimated at SEKm 5 per year.

Further, Brostaden has acquired undeveloped land in Sigtuna with possibility to produce up to 12,500 sq.m. logistics premises. The undeveloped land is located in Rosersberg, one of Stockholm's main areas for logistics, close to Arlanda airport. The investment amounted to SEKm 34. The change of possession has taken place.
   Brostaden has sold an industrial property of approx. 1,800 sq.m. in Johanneshov in in the so-called Bolidentriangeln the southern part of Stockholm. The buyer is HSB. A local development work, estimated to take four years, is in progress to convert the property into residentials. The net sales price amounted to SEKm 23 after reduction for assessed deferred tax and transaction costs of SEKm 2, which was in line with the latest valuation. The final sales price will be settled after the local development plan becomes legally binding but the most likely outcome is that no adjustment will be made. The change of possession has taken place.
   An eight-year option agreement was signed, in connection with the sale, with HSB for the sales of more than half of neighbour property, which consists of land. HSB has the right to buy the land when the development plan has become legally binding. Estimated purchase price is SEKm 160, which exceeds the current value of the entire property with SEKm 70.

 Harry Sjögren AB has acquired a fully leased industrial property in Mölndal, with an average remaining lease term of approx. 3 years. The investment amounted to SEKm 64 and covers approx. 4,900 sq.m. of which 3,500 sq.m. consists of workshop space. One of the tenants is Mechanum and the rental income amounts to approx. SEKm 7 per year. The change of possession has taken place.
In Örebro Aspholmen Fastigheter AB has acquired a warehouse and logistics property located in Pilängen, an attractive logistics and industrial area that has grown substantially. The investment amounted to SEKm 38. The property consists of two buildings with a total lettable area of ​​approx. 5,800 sq.m., of which approx. 4,300 sq.m. consists of warehouse premises and the remaining part of office and staff areas. The property, which has an unutilized building right of approx. 2,000 sq.m, is currently vacant. The change of possession has taken place.
   In Kopparlunden, Västerås, Aspholmen has started a new construction of approx. 1,850 sq.m. flexible office premises. The investment is calculated to SEKm 45 of which SEKm 2 refers to own land. Aspholmen owns and manage approx. 30,000 sq.m. in the area. The project is estimated to be completed by mid-2017. The tenant includes HiQ and Maximatecc. Fully leased the estimated rental income amounts to approx. SEKm 4. The currently occupancy rate is 44% with leases of 5-7 years.
   In Boländerna, Uppsala, Aspholmen has acquired an industrial property of 2,200 sq.m. with a potential building right of 4,000 sq.m. The property is fully leased to GE Health Care for one year with a rental income of SEKm 2.9. The investment amounts to SEKm 29. The change of possession has taken place.
   In central Örebro, Aspholmen invests SEKm 16 in the reconstruction of an office building of approx. 6,500 sq.m. The tenants include Swedbank, Telia and Fastighetsbyrån. Fully leased the estimated rental income amounts to SEKm 9. 

Fastighets AB Briggen has started a refurbishment of an office building in eastern Malmö. The investment is calculated to approx. SEKm 44 and to be completed by the end of second quarter 2017. A six-year lease from 1 July 2017 is signed with the Swedish Migration Board regarding the entire property, approx. 15,200 sq.m. The total rental value is about SEKm 138 corresponding to approx. SEKm 23 per year. When the new agreement comes to force will previous agreements with the Swedish Migration Board on approx. SEKm 17 per year expire.

 Castellum has long-term, unutilized credit facilities of approx. SEK 5 billion, which will be used for the investments.

Castellum AB (publ) discloses the information provided herein pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act.

For further information, please contact
Henrik Saxborn, CEO, phone +46 31-60 74 50
Ulrika Danielsson, CFO, mobile +46 706-47 12 61

www.castellum.se

Castellum is one of the major listed real estate companies in Sweden. The fair value of the real estate portfolio amounts to approx. SEK 41 billion, and comprises premises for office, retail, warehouse and industrial purposes with a total lettable area of approx 3.4 million sq.m. The real estate portfolio is owned and managed by six wholly owned subsidiaries with strong local roots in five growth regions: Greater Gothenburg, the Öresund Region, Greater Stockholm, Mälardalen and Eastern Götaland.
Castellum sustainability performance has, during 2015, been awarded with two top distinctions. The World Green Building Council’s award Business Leadership in Sustainability and “Green Star 2015” by GRESB which means that Castellum is one of the highest ranking companies in the world in the real estate sector.

Castellum is listed on Nasdaq Stockholm AB 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