Castellum AB (publ) is acquiring an office property for approx. SEK1.6 bn (€170m), via Fastighets AB Brostaden, a wholly owned subsidiary. The building is located in Hagastaden - an expansionary are of central Stockholm – and is currently under construction. Well situated in the area, the property is directly connected to the New Karolinska Hospital in Solna.
The Torsplan 2 office project will cover approx. 23,000 flexible and adaptable square metres – 18,000 of which will become designated office space, the remaining areas will be utilised for retail, restaurant and gyms as well as 164 parking spaces. The project is being carried out with the ambition to comply with BREEAM Outstanding – one of the highest certifications in the world. It is scheduled for completion in autumn 2016, with an investment of approx. SEK5 bn. The change of possession is scheduled for Q1 2017.
Currently, approximately 71% of the property is leased and tenants include the Stockholm County Health Care Area (SLSO). The average contract duration is 9.2 years, from scheduled time of access. The deal is conditional upon a 75% occupancy rate when possession is scheduled to be taken. Fully-leased, rental income has been calculated to total SEK76m (€8.2m), after deduction for discounts totalling approx. SEK3m (€300,000).
Torsplan 2 is well-situated in Hagastaden, with direct connections to public transit as well as Essingeleden. In addition, there are plans for a subway stop, with direct access to the building, scheduled for completion in 2020. Within the next ten-year period, Hagastaden is expected to house 50,000 workplaces.
“Hagastaden is the strongest growth area in Stockholm and the acquisition of this well-situated property heralds a vigorous continuation of our portfolio development in Stockholm”, says Castellum AB CEO, Henrik Saxborn. “We’re continuing to concentrate on selected sub-markets, and we’d like to keep expanding on track with high quality real estate. During 2015, we’ve sold properties totaling one billion kronor, in addition to sold residential projects. And we’ve invested approx. 750 million kronor in properties such as Kungsholmen, and Marievik. The intention is to continue the reconstruction of the portfolio”.
As part of the same deal, Brostaden is selling Yrket 4 office property in Solna. The 11,000m² property has future building rights of 35,000 – 40,000m², and the sale is conditional on a new zoning plan. The sale price is currently estimated at SEK280m, determined by building-rights volumes – in line with the latest valuation. The change of possession of Yrket 4 will take place when the new zoning plan has been passed (2019 at the earliest).
