Swedish real estate company Castellum has commenced the construction of Malmö’s new Swedish National Courts building with an investment of SEK 1.3 bn (€120 mln).
The finished building will comprise 26,500 m2 of space, of which some 24,000 m2 will be leased on a 20 year agreement to the Swedish National Courts Administration and house the Malmö District Court and the Administrative Court, as well as the Rent and Tenancy Tribunal in Malmö.
Discussions are also taking place with potential tenants for the remaining 2,500 m2, Castellum said. Fully leased, the building should generate an annual rent of SEK 81 mln. The property is being constructed by Peab, a Nordic construction and civil engineering company.
The investment firm is simultaneously developing a new office headquarters for energy giant E.ON over the road, in the up-and-coming Nyhamnen district.
'It feels great that the building permit has now been granted and we can begin construction. We are proud that we’re getting to build this fantastic building with the state-run Swedish National Courts Administration as long-term tenants,' said Henrik Saxborn, CEO at Castellum.
'It’s extra fun to be simultaneously constructing E.ON’s new headquarters right across the street. Altogether, the investments add up to approx. SEK 2.6 bn,' Saxborn added.
The building will be certified according to Sweden’s highest sustainability level, Miljöbyggnad Gold, which includes a focus on energy efficiency and sound material choices.
Castellum intends to finance the investment with existing operating income as well as unutilised credits.