Castellum has, through its wholly owned subsidiary Eklandia Fastighets AB, commenced a reconstruction and extension of the property Kungsportshuset in central Gothenburg.
Following an investment of €9.9m (SEK92m) the project is expected to be completed during the second quarter 2017. The reconstruction and extension is carried out according to environmental certification system Miljöbyggnad with the ambition to reach the silver level.
Eklandia owns Kungsportshuset and is now developing the property with its unique location at one of the premier venues in Gothenburg. The 2,500m2 building will be upgraded to a high-quality cultural and entertainment venue in line with new construction standards while retaining the buildings original character. The property is fully let to 2E Group with an 18-year lease where the rental income is estimated at €970,675 (SEK9m) per year.
“Kungsportshuset has for a long time been an important cultural building. By this investment with good return, we both preserve and refine a genuine location” commented Henrik Saxborn, CEO of Castellum AB.
Fastighets AB Corallen invests, through its half-owned company CORHEI Fastighets AB (former Ståhls), in a reconstruction of a central cultural property at Knäppingsborg in Norrköping. The total investment is calculated to €5.2m (SEK48m), of which 50% refers to Corallen’s share of the company, corresponding to €2.58m (SEK24m).
The reconstruction, which comprises about 2,200m2 intended for office, restaurant and retail operations, is expected to be completed during the third quarter of 2016. A tenant, law firm Glimstedt, has signed a six-year lease that covers about a third of the premises with an annual rental value of €151,013 (SEK1.4m).
Castellum has long-term, unutilized credit facilities of approx. €539m (SEK5bn), which will be used for the investments. With a portfolio values at around €4.5bn (SEK42bn) comprising premises for office, retail, warehouse and industrial purposes with a total lettable area of approx 3.4 million m2, the Swedish real estate company have made numerous additions in recent months. These include an office property in Hagastaden for approximately €170m (SEK1.6bn) in December and its first acquisition in the Hyllie area for a mixed use development consisting of 7,100m² office space, 200m² retail/ restaurant as well as 29 parking spaces built in the basement for €35m (SEK327m).
