Castellum acquires office building in Malmö for €35m

Stockholm-listed property company Castellum has acquired an office property in Malmö for SEK 327m (€35 mln), reflecting a net initial yield of 5.7%.

Castellum is paying for the Mässhallen 2 property from SEK 4 bn in long-term, underutilised credit facilities.

Mässhallen 2 is located 400 metres from the nearest train station and next to Malmö Exhibition and Malmö Arena in the increasingly popular Hyllie district of Sweden's third largest city. The building will have eight floors and comprise approx. 7,100 m2 office space, 200 m2 of retail and restaurant space, as well as 29 basement-level parking spaces.

Tenants will include NCC, Boozt.com and Zumtobel. The average period of lease contract is 7.1 years and the total rental income is approximately SEK 18 mln.

'This acquisition is a strategic first step in order to position ourselves as a driving force in Hyllie,' said Castellum CEO Henrik Saxborn. 'A great part of Malmö's growth will occur in this area. The deal will be a good basis for our continued, long-term development to establish more quality projects in the area.'

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Outlook 2016: Europe & The Nordics
Date Dec 01, 2015
Time 09:30 - 12:00
Location Catella Corporate Finance AB, Birger Jarlsgatan 6, 4th floor
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