By Dominic Chopping


STOCKHOLM--Property owner Castellum AB said Monday that it will propose a 10 billion Swedish kronor ($955.8 million) rights issue to strengthen its balance sheet and provide capital for future investment opportunities.

The fully underwritten rights issue is expected to be carried out during the second quarter of 2023, with the terms and a detailed time plan to be announced at a later stage, it said.

"The current market environment presents both challenges and opportunities for the commercial real estate sector," acting Chief Executive Joacim Sjoberg said.

"Through the proposed rights issue, Castellum will consolidate its position as one of the leading commercial real estate companies in the Nordic region with continued ability to capitalise on value-creation opportunities whilst continuing to be an attractive investment for shareholders as well as a solid counterparty to banks and debt investors."

The Swedish company said Akelius Residential Property AB, its largest shareholder with a 12.8% stake, will subscribe for its pro-rata share of the rights issue while also entering a guarantee to subscribe, subject to certain terms, for an additional 29.1% of the rights issue without subscription rights.


Write to Dominic Chopping at dominic.chopping@wsj.com


(END) Dow Jones Newswires

02-13-23 0300ET