Swedish listed property firm Castellum has signed an agreement with peer Heimstaden to buy and sell roughly €260 mln (SEK 2.4 bn) of residential and commercial assets.

Swedish listed property firm Castellum has signed an agreement with peer Heimstaden to buy and sell roughly €260 mln (SEK 2.4 bn) of residential and commercial assets.

In all, the transaction comprises 27 properties totalling 186,668 m2 in Norrköping, Linköping, Örebro and Solna.

As part of the deal, Castellum has acquired four properties in Örebro and one asset in Solna through its wholly owned Aspholmen and Brostaden subsidiaries. In central Örebro, Aspholmen has acquired four office properties totalling 22,611 m2, with an occupancy rate of 92%. The investment amounted to SEK 343 mln.

In Solna, Brostaden has acquired an 5,364 m2 office property with an occupancy rate of 17%.The investment amounted to SEK 63 mln.

In addition, Castellum has acquired 50% of the shares in Henry Ståhl Fastigheter (HSAB) through its Corallen vehicle, with an option to acquire the remaining 50% of the company after 18 months. Heimstaden has a corresponding option to sell the remaining 50% after Corallen’s option expires. The deal is expected to close in early June 2015.

In addition, prior to the change of possession, Heimstaden will assume ownership of all of HSAB’s residential properties as part of refocussing HSAB exclusively on commercial premises. On completion of these deals, HSAB will own 13 properties in Norrköping and nine properties in Linköping, corresponding to a total property value of SEK 1.9 bn.

'This deal means that Castellum, with the strategy of a long-term player, gets the opportunity to grow in a region with favourable future prospects. We strengthen our position in Linköping and Örebro while entering a new market – Norrköping,' commented Henrik Saxborn, CEO of Castellum.

The company has established a new joint venture with Heimstaden for urban development in this new market. 'We complement each other well: Castellum has vast experience in commercial properties and Heimstaden has a steady focus on residential real estate. Together we’ll develop a solid existing commercial property portfolio, while opening up for new constructions of both commercial and residential properties,' he added.