GÖTEBORG, Sweden--(BUSINESS WIRE)--Regulatory News:
The selling price totalled SEKm 4,500, after deduction for assessed deferred tax of approx. SEKm 100. The price exceeded the latest property valuation by 8% and the acquisition price in the Norrporten transaction last spring by 16%. Final economic results will also be affected by transaction costs of approx. SEKm 30, as well as reversed goodwill of SEKm 320 and deferred tax income of SEKm 350. The transaction was carried out with a yield of 5.1% on current net operating income, after Castellum’s administration costs.
Purchaser is Diös and the change of possession will take place on February 1st, 2017.
The transaction is conditional on shareholder approval of a rights issue, as determined by a Diös Extraordinary General Meeting. The transaction will also require a usual approval by the Swedish Competition Authority. Castellum holds guarantees from major shareholders in Diös – representing approx. 36% of Diös equity – of their intention to sign over their pro-rata shares in the rights issue. Nordea and Swedbank will guarantee the remaining amount, according to customary conditions.
The portfolio now being sold primarily comprises offices/retail stores and a number of residences. Area totals approx. 216,000 sq.m, distributed over 10 properties in Sundsvall (approx. 53,000 sq.m.), 13 properties in Umeå (approx. 87,000 sq.m.) and 9 properties in Luleå (approx. 76,000 sq.m.). This divestment means that Castellum is further concentrating holdings, thereby withdrawing from the Umeå market, retaining one building in Luleå, in the short term, and reducing real estate area in Sundsvall by approximately one quarter. In total, the divestment amounts to 15% of the real estate portfolio acquired in the Norrporten transaction.
Total rental value adds up to approx. SEKm 360, and net operating income totals approx. SEKm 230 (including admin costs). Major tenants include the Courts of Sweden, Skandia insurance company and the Swedish Transport Administration. The economic occupancy rate totals approx. 93% and average contract length is 4.5 years.
Via this transaction, Castellum continues the process of carrying out the pledge made after the Norrporten acquisition last spring: to sell SEK 4 billion worth of properties, as part of the financing strategy. Earlier this autumn, Castellum divested properties worth SEK 1.2 billion.
“This deal means that we’re concentrating operations to fewer geographical locations – thereby increasing the density of our holdings”, says Henrik Saxborn, Castellum CEO, adding that the portfolio currently being sold has attracted a lot of interest.
“In line with our long-term strategy”, Saxborn continues, “Castellum will continue to grow and increase the quality and density of our holdings through selected real estate projects, as well as acquisitions.”
Properties included in the transaction:
Sundsvall: Aesculapius 10, Badhuset 1, Bryggeriet 1, Cupido 7, Järnvägsstationen 1, Skandia 1, Stenhuggaren 5, Vesta 1, Vesta 3 and Ödet 7.
Umeå: Ask 5, Björken 1, Hugin 4, Kraften 12, Läraren 1, Magne 4, Nytorget 2, Odin 12, Skvadronen 2, Slöjdaren 3, Sågen 5, Vipan 24 and Älvsbacka 9, 10.
Luleå: Biet 1, Forellen 9, Gripen 1, Hermelinen 12, Hunden 15, Katten 14, Råttan 17, Strutsen 14 and Östermalm 6:16.
This information is information that Castellum AB is obliged to make public pursuant to the Securities Markets Act. The information was submitted for publication at 8 am CET on November 22, 2016.
Castellum is one of the major listed real estate companies in Sweden. The fair value of the real estate portfolio amounts to approx. SEK 74 billion, and comprises of commercial properties for office, retail, warehouse and industrial with a total lettable area of approx. 4.7 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.
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