Gothenburg Port Authority signs letter of intent with property company to develop the Halvorsäng area.
Sweden’s Port of Gothenburg has signed a letter of intent with Castellum to develop a logistics hub in the Halvorsäng area. The area covers approximately 270,000 square metres, with 155,000 square metres of building space. Construction will start in 2021 and will take four years to complete.
The development has been given the green light by the Gothenburg City Executive Board, although the joint venture will need to be approved by the city’s council. Castellum’s initial investment will involve acquiring a 50% stake in the land, at an estimated cost of SEK 400-500 million, with a further investment of SEK 550 million in development.
“We have arrived at an ideal solution for all concerned, but with the land remaining at the disposal of the Gothenburg Port Authority. The plan is to share costs and risks with a partner that has the requisite knowledge and expertise in the development of logistics facilities that will benefit the port as a whole,” said Elvir Dzanic, Gothenburg Port Authority chief executive.
