Through a company acquisition of the Finnish real estate group Lindström Invest, Castellum has acquired a real estate portfolio in Helsinki. The transaction is carried out as a share issue in kind.
The portfolio comprises five office properties with a total lettable area of approximately 36,000 sq.m. The acquisition price amounts to EUR 150 million, including overheads of EUR 7 million, of which EUR 81 million is paid as a share issue in kind and the remaining consists of takeover of debt.
All properties are well located in Kalasatama, a former port area that the City of Helsinki is now developing into a district intended for 25,000 new residents and 10,000 new jobs. Kalasatama is located 2 km northeast of Helsinki CBD, which can be reached in six minutes by metro from Kalasatama. The buildings contain high-quality office space and a conference center.
“It feels very good to increase our presence in Helsinki with this deal. As a major player in the commercial real estate market, we see a growing interest in development in all of the Nordic region’s major cities. Kalasatama has great potential to become a truly dynamic area. By taking a place there, we are significantly strengthening our position in Helsinki, where we also intend to expand further. Initially, the deal does not have a visible impact on management results and net asset value SEK / share, but we expect it to contribute to increasing Castellum’s long-term growth”, says Henrik Saxborn, CEO of Castellum.
The transaction is carried out as a share issue in kind, meaning that the sellers contribute all shares in Lindström Invest Oy in exchange for receiving 4,061,745 newly issued shares in Castellum at a subscription price of SEK 203.64 per share, corresponding to a total value of approximately SEK 827 million. The subscription price has been determined through a calculation of the volume-weighted average price for the Castellum share on Nasdaq Stockholm during the ten trading days immediately preceding the day of the transaction, which has taken place today through simultaneous signing and access. The decision on a share issue in kind has been made by the Board of Castellum on the basis of the authorization from the 2020 Annual General Meeting. The share issue in kind entails a dilution for existing shareholders of 1.5 percent.
The transaction in summary:
Castellum acquires Lindström Invest Oy from its owners
Acquisition price: EUR 150 million
Closing date: 13 November 2020
Average contract duration: 2.8 years
Rental value: approx. EUR 11 million in 2021
Major tenants: Lindström Oy, Suomen Asiakastieto Oy, Nordic Morning Oy
Rental area and occupancy rate: 36,000 sq.m, 86%
Number of new Castellum shares: 4,061,745
This information is information that Castellum is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 16.30 CET on November 13 2020.
For further information please contact:
Henrik Saxborn, CEO Castellum AB, +46.706.947450
Ulrika Danielsson, CFO Castellum AB, +46.31.607474
Castellum is one of Sweden’s largest listed real estate companies with a property value of SEK 98 billion. We are active in 17 Swedish growth regions as well as in Copenhagen and Helsinki. Every day, 250,000 people go to work in our premises. We develop flexible workplaces and logistics solutions in close proximity to city centres and with a lettable area of 4.3 million square meters. One of our sustainability goals is to be completely climate neutral by 2030. Castellum is the only Nordic real estate company selected by the Dow Jones Sustainability Index (DJSI). The Castellum share is listed on the Nasdaq Stockholm Large Cap.