Stockholm-listed property firm Castellum has acquired Kielo, a sustainable office developer-investor launched by Brunswick Real Estate and Blackstone in 2017, for around €640 mln.
Kielo was set up by Brunswick and Blackstone Tactical Opportunities nearly four years ago to focus on sustainable and high-quality offices across Finland. The firm currently owns 22 office properties, totalling around 237,000 m2 of lettable area in Finland's fast-growing urban and university locations, such as the Helsinki Metropolitan Area, Tampere and Turku. Some 70% of the buildings have an environmental certification.
During Brunswick’s management, Kielo completed six and initiated two energy efficiency projects with an annual CO2 saving of 7,500 tonnes. Patrik Andersson, CEO of Brunswick, said: 'Kielo marks a clear success in the evolution of Brunswick, I am particularly proud of the comprehensive sustainability and energy efficiency projects underpinning the core of Brunswick’s beliefs and the team and organisation in Finland.'
Blackstone and Brunswick were advised by CBRE as financial advisor, Avance Attorneys as legal advisor and PwC as tax advisor.
Benjamin Rouah, head of real estate investment banking, Continental Europe at CBRE, said the deal 'represents the largest transaction in the office sector across the Nordics since the beginning of Covid'.
'There is a large amount of capital that is looking to be invested in real estate and platform deals are viewed as opportunities to enter a market in scale.'
