The investment, announced in February this year, amounted to ca. €81.2m (780m SEK), after deduction for deferred taxes and transaction costs of ca. €2.81m (27m SEK). The well-known property held earlier Stockholm Vatten´s head office and currently has a lettable area of ca. 11,500 m², as well as unutilized building rights for ca. 1,500 m².
Castellum, which has already owned a number of neighbouring properties for some time, plans to join the City of Stockholm and other property-owners in the area to create a big-picture concept for all of Torsgatan. Castellum’s primary intention for the Sabbatsberg 24 area is to create a living mixed-activity neighbourhood that adds more modern workplaces to very attractive locations.
Henrik Saxborn, Castellum CEO said: “We look forward to developing the existing building as well as contributing exciting new commercial property areas to the heart of Stockholm”
The property has essentially been vacant since Stockholm Vatten changed location in March, 2016. This creates possibilities for the development of new, modern and attractive work-and-meeting places in central Stockholm, while conserving the heritage qualities of the building’s Art Nouveau architecture and decor.
“This is a comprehensive development project with the potential to create a high-profile property while retaining the building’s unique Art Nouveau character”, says Henrik Saxborn. “The location is fantastic and we’ll be able to carry out extremely efficient property management through coordinating with our existing holdings in the area.”
Castellum will finance the acquisition through existing, unused credit.