Castellum is to acquire Norrporten for approximately SEK13.4bn (€1.5bn).
Last month, Castellum was reported as wanting to buy Norrporten, which has been preparing for a stock market listing. Norrporten is owned by state-controlled Swedish national pension funds AP2 and AP6.
Castellum has assets under management worth approximately SEK42bn (€4.6bn), which will increase to SEK71bn (€7.7bn) after acquisition.
The deal would be the second largest Swedish real estate deal after the 2008 sale of state-controlled Vasakronan for SEK41.1bn (€4.5bn).
”The acquisition of Norrporten is a strong move forward in Castellum’s long-term growth strategy. Norrporten has an attractive property portfolio that complements Castellum’s existing portfolio in growth markets around Sweden and Denmark, and which adds properties in a number of new markets where Castellum is not already present. Through the acquisition, we fortify our position as one of Sweden’s leading property developers and managers with a focus on remaining local and close to our customers. Our objective will continue to be an annual growth in income from property management of 10 percent at maintained low financial risk. We look forward to continue to deliver value to our shareholders with Norrporten onboard,” said Henrik Saxborn, CEO Castellum.
