Swedish authority greenlights Blackstone's €1.8b Castellum buy

The Swedish Competition Authority has granted regulatory approval for Blackstone’s acquisition of a portfolio of 214 income-producing warehouse and logistics assets from Castellum for SEK 18.1 bn (€1.8 bn).

The deal was announced on 18 December. The assets will be incorporated into Blackstone’s pan-European last mile logistics platform, Mileway.

As previously announced the sale will take place in two tranches; a first tranche, constituting 39 properties costing around SEK 5.0 bn, is expected to close on or around 5 February. A second tranche of 175 properties, representing net proceeds of SEK 13.1 bn, is expected to close in the end of the first quarter or in the beginning of the second quarter of 2021. The second tranche is subject to the successful completion of Castellum’s takeover bid for Entra, which was also announced on 18 December.

According to Castellum, the price of the property portfolio exceeds the most recent valuation of the properties by 20%, implying an exit yield of 4.7%. It is expected to increase Castellum’s EPRA NRV by approximately SEK 8 per share upon completion of both tranches of the transaction.

Following a successful combination with Entra, Castellum said it would in due course evaluate its capital position. If there is surplus capital, Castellum will consider a return of capital to its shareholders.

Castellum plans to remain an active owner in the logistics segment, retaining a dedicated asset management platform with an exposure to 40 warehouse and logistics assets on balance sheet and development projects. Its largest scheme is Castellum Säve (previously Säve Airport) with an investment pipeline of approximately SEK 10 bn.

Its income-producing warehousing and logistic portfolio represents approximately SEK 5 bn of asset value and approximately SEK 300 mln in annual rental value. It also has another 1 million m2 of logistics projects under development, including 800,000 m2 at Castellum Säve.


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