Castellum building new head office for E.ON – investing about SEK 1.1 billion in Malmö
Castellum plans to begin construction of an office building in Malmö’s attractive Nyhamnen district with the E.ON energy company as the primary tenant. The investment, expected to amount to approximately SEK 1.1 billion, is an important part of Castellum’s strategy for expanding its role as an urban developer in the Öresund region.
E.ON Sverige – a Swedish subsidiary of one of the world’s largest privately owned energy groups – has signed an agreement with Castellum to construct its new Nordic main office for approximately 1500 employees in the Nyhamnen district, close to the main railroad station and downtown Malmö. The transformation of Nyhamnen is an important part of the expansion and further development of Malmö's city center, and the project establishes Castellum as one of the leading urban developers in the region's most centrally located growth area. When completed, Nyhamnen will be a mixed-use urban district with approximately 13,000 workplaces and 6,000 residential units.
“It's extremely satisfying that the choice fell to Castellum, and that in tough competition, we were determined to be the optimal partner for developing a modern head office for E.ON, based on their stringent requirements for sustainability and technical solutions,” says Henrik Saxborn, CEO for Castellum. “With this project, Castellum is strengthening its position as an urban developer in the Öresund region, and in close collaboration with E.ON and the City Of Malmö, we are able to both influence and take responsibility for Malmö's continued development and urban environment.”
The planned new construction in Nyhamnen will comprise about 24,500 square meters of leasable area. Work will soon begin with preparing a new local plan and building permits. The construction phase is expected to take about 24 months, with E.ON moving in during the summer of 2021. The 12-year leasing agreement between Castellum and E.ON will go into effect when the building is occupied. Fully leased, the investment is expected to generate annual leasing revenue of SEK 68.5 million.
“It has become increasingly clear that we need a new, inclusive office building that contributes to our operations, reflects our brand and company culture, and strengthens our position as an attractive employer,” says Marc Hoffman, who heads E.ON’s Swedish operations. “It feels especially good that we've decided to lease our premises and join with Castellum in the planning and construction of a new office building for E.ON's Nordic head office, with the clear goal of creating a building that will serve as a model of building sustainability.”
Both E.ON and Castellum want an office building that is extraordinary from the sustainability perspective. This will characterize all aspects of the project, from building production and choice of materials to energy solutions. The new building will therefore be certified in accordance with the highest level of environmental certification and in compliance with the Well Building Standard. The latter stipulates unique requirements for human health and well-being at the workplace.