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Swedish real estate firm Castellum AB agreed earlier this week to sell a portfolio of nine public sector properties to Sweden's fund AP7 for SEK 5.6 billion (approximately INR 50,000 Cr). The properties, mainly serving judicial and government functions and spanning about 110,000 sqm, are fully leased with an average contract term of around 11 years and a 100 percent occupancy rate. The sale price slightly exceeds the properties recorded value at the end of 2025, and Castellum expects a total net earnings impact of roughly SEK 750 million from the transaction. Closing is scheduled around late April 2026, subject to regulatory and tenant approvals.
Swedish property company Castellum AB has entered into an agreement to divest nine public sector properties to Swedish national pension fund AP7 for a total consideration of SEK 5.6 billion (INR 50,000 Cr approx.), in a deal announced earlier this week. Advertisement
The portfolio covers around 110,000 square metres of lettable area. Most of these assets are public sector buildings serving judicial and other government functions in cities including Bor's, Gothenburg, Jnk ping, Malm, Mlndal and rebro. All properties are fully let and benefit from a strong occupancy profile.
Castellum's management highlighted that these properties had been developed and managed to create value over time and that the transaction supports its strategic goal of achieving a 10 percent return on equity, with AP7 seen as a suitable long term owner.
The sale price of SEK 5.6 billion exceeds the carrying value of about SEK 5.15 billion reported at the end of last year, including investment in ongoing projects. Castellum estimates that the transaction will generate a total earnings effect of close to SEK 750 million, which includes contributions from rental and service income adjustments, property value changes, goodwill revaluation and deferred tax effects.
The deal remains subject to approvals from the Swedish Inspectorate of Strategic Products, the competition authority and key tenants. Most of the properties are expected to change hands around late April 2026, while two of the assets are planned to transfer later in the second or third quarter of the year.
This divestment follows earlier asset sales by Castellum as part of its ongoing portfolio refinement, including smaller transactions last quarter aimed at focusing on higher return assets.
Source Reuters
5th Jun, 2025
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