Castellum Buys Norrporten for $1.65 Billion From Swedish Fundsby
Castellum AB acquired Norrporten AB for 13.4 billion kronor ($1.65 billion) in a deal that will see the Nordic real estate company expand to new regions and cities, including in northern Sweden.
Castellum will buy Norrporten from two Swedish pension funds for 10.4 billion kronor in cash and 23.4 million shares in Castellum, the firm said in a statement Wednesday. The AP2 and AP6 funds will also get a dividend of 464 million kronor, which will be distributed prior to closing of the deal, bringing the total consideration to 14 billion kronor.
Castellum, based in Gothenburg in Sweden, owns mainly commercial properties in southern Sweden and Denmark while Norrporten, based in the city of Sundsvall, focuses mainly on offices and shops in locations from Luleaa in northern Sweden to Copenhagen. The deal increases the value of Castellum’s portfolio by 60 percent to 71 billion kronor.
“Our objective will continue to be an annual growth in income from property management of 10 percent at maintained low financial risk,” Henrik Saxborn, chief executive officer of Castellum, said in the statement.