The Second and Sixth Swedish National Pension Fund sell Norrporten to Castellum

The Second Swedish National Pension Fund (“AP2”) and the Sixth Swedish National Pension Fund (“AP6”) today announce that they have entered a definitive agreement under which Castellum AB (publ) (“Castellum”) will acquire all outstanding shares in Norrporten AB (publ) (“Norrporten”) through a combination of cash and shares. Up until closing, the total consideration amounts to SEK 14.0 billion. The sale will result in the realisation of significant value increases. The value of Norrporten’s property portfolio has on average grown by 14% during 2000-2015.

The cash consideration amounts to approximately 78% of the total consideration for Norrporten and Castellum shares represent the remaining approximately 22%. Following the transaction, AP2 and AP6 will each own approximately 5% of the share capital and votes in Castellum.

AP2 and AP6 believe that this is the right time to divest their holdings in Norrporten, and thereby realise a significant capital increase to the benefit of Swedish pensioners. Castellum is one of Sweden’s largest and most renowned property companies and AP2 and AP6 look forward to become shareholders in Castellum.

– We are proud of Norrporten’s development since 2001. The sale to Castellum gives Norrporten the best possible environment for continued development. AP2 has been an owner in Castellum since 2002 and we look forward to increasing our ownership in the company. For AP2, the transaction will allow us to take another step in our investment strategy to increase the share of property investments on other markets, says Eva Halvarsson, CEO of AP2.

– Castellum is a large listed property company with significant experience and competence, and we believe that Norrporten will continue its successful development as part of the combined company. There is a clear logic for AP6 to divest its holding in Norrporten given that the investment has accounted for close to 25% of our total invested capital. It therefore makes sense for us to rebalance our portfolio through this transaction, which is the result of a comprehensive and well-structured sales process, says Karl Swartling, CEO of AP6.

The transaction requires approval from relevant authorities and the extraordinary general meeting’s approval of a rights issue at Castellum.

Rothschild has acted as principal financial advisor to AP2, AP6 and Norrporten, who also have been advised by Goldman Sachs International and Nordea. Vinge has acted as legal advisor.

For more information:
Eva Halvarsson, CEO Second Swedish National Pension Fund, +46 31 704 29 11
Ulrika Danielson, Head of Corporate Communications, +46 31 704 29 29

Karl Swartling CEO, Sixth Swedish National Pension Fund, +46 31-741 10 04
Ulf Lindqvist, Director of communications, +46 708 74 10 48,