Castellum to Redevelop Landmark Stockholm Building
- Mar 20, 2018
Castellum will invest approximately $37.6 million to transform the Sabbatsberg 24, a 123,784-square-foot building located near Torsgatan in central Stockholm, Sweden, into modern office space. The Sweden-based firm acquired the landmark building was last year, with the goal of enriching and developing the building.
The first phase of the project, which is set to begin this spring, involves the redevelopment of more than 95,000 square feet and is scheduled for completion during the third quarter of 2019. The building will be designed to open out towards the street and offer connections to the inner courtyards.
“The property will be restored gently, retaining the current color and shape,” Henrik Saxborn, Castellum’s CEO, told Commercial Property Executive. “Inside we will create a modern and flexible office space, while highlighting the beautiful original details.”
Designed by Ferdinand Boberg in 1906, the property served as the administration building for Stockholm’s Gasverk. In 1911, it became home to Stockholm Vatten’s headquarters, which remained there until 2016.
“We’re experiencing massive demand for office space in central Stockholm and continue to strengthen the quality of our real estate portfolio with modern and unique office solutions in an extremely attractive location,” Saxborn said. “The property is in a unique location close to communications, shopping and other services. The whole of Torsgatan is undergoing a restructuring and our ambition is to create an easy-accessible destination where people work, live and socialize more than just during office hours.”
High demand for office properties
According to Saxborn, there’s a large demand for office properties in central Stockholm, which is why the company decided to transform the building, even without a tenant signed up for the space. Based on the market, it’s expected that the space will bring in approximately $4.9 million a year.
Earlier this week, Castellum kicked off development of E.ON Nordic headquarters, a 263,700-square-foot office property near the central station in Malmö. Castellum’s roster of projects also includes the construction of Eminent, Sweden’s first WELL-Certified building, in Malmö’s Hyllie district.
The company is forging long-term plans with Stockholm City and other property-owners to develop and create a comprehensive concept for the entire Torsgatan area.
Image courtesy of Castellum