Castellum Tapped to Develop Stockholm City District

By Roxana Baiceanu

Stockholm skyline

A joint venture of Castellum, Wallenstam AB and Åke Sundvall AB has won a land allocation competition in Söderstaden, an area south of central Stockholm. The companies plan to develop an entire city district on the site, which will add approximately 1 million square feet of office, hotel, retail and residential space. Construction work is slated to start in 2020 and to be carried out over a six- to eight-year period. The final cost of the project was estimated at $160 million.

 “A living city district requires a dynamic mix of residences and workplaces. Our contribution at Castellum is to create attractive workplaces, utilizing our knowledge of commercial premises and local markets. Wallenstam AB and Åke Sundvall AB are experienced developers of residential space. Our mutual competence and complementary skills work together to create a city district in the heart of a lively events area,” said Anders Nilsson, managing director at Castellum, in a prepared statement.

A company milestone

Castellum will be in charge of developing the commercial component, which is expected to encompass approximately 350,000 square feet of office, hotel and retail space. The remaining part—more than 750,000 square feet—will consist of residential buildings and hockey-practice rinks. Wallenstam AB and Åke Sundvall AB will oversee their delivery.

The project is considered to be the largest one Castellum has ever embarked on. In the summer, the company broke ground on Eminent, Sweden’s first office building registered for a WELL certification. The 103,000-square-foot property is located in the Hyllie district of Malmö, Sweden. The cost of investment was estimated at $41 million.