The Swedish Competition Authority has granted regulatory competition approval for Blackstone’s acquisition of a portfolio of 214 warehouse and logistics assets from Castellum for SEK 18.1 billion (appr. €1.8bn).
”Further to the announcement made on December 18, 2020, regarding the sale of an asset portfolio to real estate funds managed by Blackstone, Castellum notes that the regulatory approval from the Swedish Competition Authority has been obtained,” said Castellum in a statement.
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, for net proceeds of SEK 5.0 billion, expected to close on or around February 5, 2021, and a second tranche, constituting 175 properties, for net proceeds of SEK 13.1 billion, which is expected to close in the end of the first quarter or in the beginning of the second quarter 2021. The second tranche is subject to the successful completion of Castellum’s voluntary share exchange and cash offer on Entra ASA (Entra) as announced on December 18, 2020,” said in the statement.
The sale of the asset portfolio creates high value for Castellum’s shareholders, according to the company.
Castellum said the valuation of the property portfolio exceeds the most recent valuation of the properties by 20%, implies an exit yield of 4.7% and 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 will in due course evaluate its capital position. If there is surplus capital, Castellum will consider a return of capital to its shareholders,” said the company in a statement.
Castellum said it will remain an active owner in the warehouse and logistics segment and retain a dedicated asset management platform with a significant exposure to 40 warehouse and logistics assets on balance sheet and development projects, including the largest one at Castellum Säve (previously Säve Airport) with an investment pipeline of approximately SEK 10 billion.
The retained income-producing warehousing and logistic portfolio represents approximately SEK 5 billion of asset value and approximately SEK 300 million in annual rental value, added the company.