Castellum gets green light for Swedish utilities HQ

Swedish real estate company Castellum has commenced work on a new headquarters scheme for energy giant E.ON in Malmö, Sweden with an investment of SEK 1.3 bn (€116 mln), including land acquisitions.

The building permit for the 27,000 m2 scheme has already been issued and construction will begin in the second quarter of this year. Skanska has been appointed contractor.

'In these times of concern caused by the Covid-19 virus, it feels gratifying to continue investing in important city-development projects such as E.ON’s new headquarters. This project is Castellum’s largest ever and it will strengthen both our cash flow and balance sheet with a long leasing contract and a solid customer,' said Henrik Saxborn, CEO at Castellum.

E.ON will rent around 24,000 m2 of the planned space with negotiations continuing for the remaining 3,000 m2. E.ON has signed a 12-year lease for the scheme corresponding to an annual rental value of SEK 70 mln, with occupancy planned from the first quarter of 2023.

Castellum intends to finance the investment with existing operating income as well as unutilised credits, the firm said.

The project will stand between eight and nine floors high with a restaurant, gym and roof terrace, and is targeting Breeam Outstanding and Well certifications. Skanska said that the contract was worth SEK 920 mln.

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