Castellum to Build E.ON Headquarters in Sweden

The real estate firm will develop a 263,700-square-foot office building that will house the Nordic base of the energy corporation under a 12-year lease agreement.

E.ON Energy Group, Nordic Headquarters, Malmö, Sweden
E.ON Energy Group, Nordic Headquarters, Malmö, Sweden

Swedish real estate company Castellum will kick off development of a 263,700-square-foot office property near the central station in Malmö, Sweden, courtesy of a new deal with E.ON Energy Group. The energy company recently tapped Castellum as a partner in the construction of a tower to house its Nordic headquarters. Castellum will shell out 1.1 billion kronor, or approximately $133 million, to complete the project.

E.ON has signed a 12-year lease with Castellum for its headquarters space in the Kanozi Architects-designed office building, and as anchor tenant, the energy company will have ample room to house roughly 1,500 employees. The collaboration has its advantages for Castellum as well. “This agreement helps Castellum strengthen its position as a major city-developer in the Öresund region,” Henrik Saxborn, CEO of Castellum, said in a prepared statement. “In close cooperation with E.ON and the City of Malmö, we’ll be along to influence and take responsibility for Malmö’s city environment and continued development.” 

The development partnership wasn’t just handed to Castellum. The real estate company emerged victorious in a decidedly competitive bid for the opportunity to work with E.ON, which requires that its new digs be both cutting-edge and, dovetailing with Castellum’s experience, highly sustainable. Castellum will rely on own earned funds and unutilized credits to finance construction of the property, with plans to welcome E.ON in 2021.

Making office space in Malmö

Castellum brings a great deal of experience to the table, boasting a 47.4 million-square-foot portfolio of office, retail, industrial and logistics properties in 20 cities across the Nordic Region, including Malmö, of course, where the company has a substantial and growing presence. In addition to the E.ON undertaking, Castellum’s roster of projects includes construction of Eminent, Sweden’s first WELL-Certified building, in Malmö’s Hyllie district. 

“There has been a high level of activity in the office rental market in Malmö, where tenants have been demanding modern, flexible office space in locations close to public transportation and with access to services,” according to a new report by commercial real estate services firm JLL. “This in turn has created favorable conditions for new build and potential for rental growth.”

Image courtesy of Kanozi Architects