Swedish listed property company Castellum has netted a total of SEK 4,500 mln (€460 mln) after selling a portfolio of assets in Sundsvall, Umeå and Luleå to local property investor Diös.
In total, the divestment - Castellum's biggest ever sale - amounts to 31% of the real estate portfolio acquired in the Norrporten deal in April of this year. After the €1.5 bn takeover of its peer, Castellum declared its intentions to sell SEK 4 bn of properties.
Castellum said the price exceeded the latest property valuation by 8% and the acquisition price in the Norrporten transaction last spring by 16%. The deal was carried out with a yield of 5.1% on current net operating income, after Castellum's administration costs, booking the company a significant gain on the deal.
'This deal means that we're concentrating operations to fewer geographical locations – thereby increasing the density of our holdings,' commented Henrik Saxborn, Castellum CEO. 'In line with our long-term strategy, Castellum will continue to grow and increase the quality and density of our holdings through selected real estate projects, as well as acquisitions,' he added.
The portfolio primarily comprises offices and retail stores and some residential. The total deal represents 216,000 m2, including 10 properties in Sundsvall (approx. 53,000 m2), 13 properties in Umeå (approx. 87,000 m2) and 9 properties in Luleå (approx. 76,000 m2). The portfolio's occupancy rate totals around 93%, with an average contract length of 4.5 years.
The sale sees Castellum withdraw from Umeå, retain one building in Luleå, and reduce its Sundsvall holdings by approximately one quarter. The deal is the second biggest transaction in Sweden year to date.
Pangea Property Partners advised Castellum.
