Castellum to Break Ground on $131M Swedish National Courts Building

The company has received the requisite permits for the 285,000-square-foot build-to-suit project, which will also offer 26,900 square feet for lease to non-court tenants.
Swedish National Courts Administration Building. Image courtesy of Henning Larsen Architects

With a building permit now in hand, Swedish real estate company Castellum AB is primed to commence construction of the new Swedish National Courts Administration building in Malmö, Sweden. Construction of the 285,200-square-foot office project, which carries a development cost of 1.3 billion Kronor, or approximately $131.7 million, will get underway during the second quarter of 2020.   


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The Courts building will sprout up near a rail station within the flourishing Nyhamnen district, one of Malmo’s most important development regions. Designed by architectural firm Henning Larsen, the property will meet the court’s essential criteria for security and accessibility. The building will also adhere to high sustainability standards with Miljöbyggnad Gold certification for energy efficiency and sound material usage. The build-to-suit will be home to more than 600 employees, which will make it one of the largest workplaces for lawyers in northern Europe. Interpreters, the Swedish Police and staff of the Swedish Prison and Probation Service will also have accommodations in the new facility, which, in addition to administrative offices, will feature negotiation areas and public spaces.

As lead tenant, the National Courts Administration will occupy approximately 258,300 square feet of the new office property under a 20-year lease agreement with Castellum to commence upon occupancy. Castellum expects to develop the Courts building over a two-and-a-half-year period, with a scheduled delivery near the close of 2022.  

Pandemic-era demand

Sunny Sweden has not escaped the ravages of COVID-19. The health-care capacity is under pressure and the number of new people infected has not decreased, as noted in a Cushman & Wakefield market update released April 30. And while the real estate transaction market is mostly on hold across the country, the office sector is seeing some indications of life. “Office occupiers have moved from crisis mode to planning mode. For the past two weeks some have undertaken viewings again; previous ongoing projects are now moving along, and new ones are starting,” according to the Cushman & Wakefield report. The National Courts Administration building will have roughly 26,900 square feet of office space available for lease to other businesses. Castellum is presently conducting discussions with potential tenants.