The Gothenburg Port Authority has signed a Letter of Intent (LoI) with real-estate company Catellum to develop the Halvorsang area into a logistics hub.
According to a statement, both parties will have a 50% share in the joint venture company. The aim of the partnership is to facilitate planning development and construction of the area, with a view to owning, managing and leasing the completed facilities.
Castellum’s initial investment will involve acquiring a 50% interest in the land, at an estimated cost of around SEK 400-450 million, ($47-52.8 million) and with a further investment of SEK 550 million ($64.62 million) in development.
Castellum was chosen as the port’s partner following a selection process at the end of 2020. The Port Authority reviewed a number of bids in which financial and environmental considerations were key factors.
The land area is approximately 270,000 square metres, including 155,000 sq.m of building space. Construction is due to commence during 2021 and will take four years to complete.
Elvir Dzanic, Gothenburg Port Authority chief executive, said, “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.”
The project has been approved by the City Executive Board although the setting up of a joint venture company will be subject to approval by the City Council, the Port said.
Henrik Saxborn, Castellum AB chief executive, also commented, “We are currently awaiting a decision from the City Council that will facilitate long-term collaboration, ultimately leading to the development of logistics facilities that will help fulfil the goals of the partners and create new job opportunities throughout the region.”
