said April 13 thatit has entered into an agreement to acquire peer Norrporten AB.
TheSwedish company inked a deal with Norrporten's owners, the Second and SixthSwedish National Pension Funds, to acquire all shares in the company for a cashconsideration of 10.4 billion Swedish kronor and 23.4 million of its ownshares. The total deal amounts to 13.4 billion kronor. PropertyEU reportedthat the deal represents the largest real estate transaction in the countrysince 2008.
Thefirm had previously confirmed that it was evaluating a possible acquisition of Norrporten's entireproperty portfolio from the state-controlled funds. Norrporten's portfolio wasvalued at 25 billion kronor, according to the previous report.
Theacquisition will be financed through a 6.5 billion kronor fully underwrittenrights issue and 3.9 billion kronor from existing and new debt facilities.
Castellum'spro forma property value will increase to 71 billion kronor, a 60% gain, whilethe annual pro forma income will increase to 2.5 billion kronor, up from 1.6billion kronor. This is excluding the potential synergies, which are expectedto be around 150 million kronor annually.
"Theacquisition of Norrporten is a strong move forward in Castellum's long-termgrowth strategy. Norrporten has an attractive property portfoliothat complements Castellum's existing portfolio in growth markets around Swedenand Denmark, and which adds properties in a number of new markets whereCastellum is not already present," Castellum CEO Henrik Saxborn said.
Theacquisition and rights issue are subject to follow-on authorization by theextraordinary general meeting expected to be held on May 20, as well asclearance from the Swedish Competition Authority.
Norrportenwas previously reportedto be in the running for a listing in Sweden.
CarnegieInvestment Bank AB and Pangea Property Partners KB are the financial advisersto Castellum while Gernandt & Danielsson Advokatbyrå KB are legal advisersfor the transaction.
Forthe rights issue, Carnegie Investment Bank AB, Skandinaviska Enskilda BankenAB, Svenska Handelsbanken AB and Swedbank AB are joint global coordinators andjoint bookrunners.
As of April 13, US$1 wasequivalent to 8.13 Swedish kronor.