Good morning, everyone. This is Henrik Saxborn at Castellum, the morning of the 21st of December 2020. We would like to give you an updated, the same introduction actually as we did Friday afternoon about our sales to Blackstone, as well as give you our new bid on Entra. We'll simply go through this quickly and then open for Q&As. We can take the next slide, please. Okay, we're doing two things here now, and I think it's good for explanation that we go through them rapidly again. We simply have agreed with Blackstone to sell 214 assets in two ranges. The first SEK 5 billion is sold. Whatever happens, it's 39 assets. The second part is then up to SEK 13 billion. It's that we're selling when if we are acquiring Entra.
This is done to a value uplift of 20% compared with our book value, SEK 80 billion. The first part of that is signed, and of course, this will affect our balance sheet in the Q4. You have the revised offer on Entra. Here we simply increase our bid to approximately NOK 185. It's done by that we're going to issue eight new Castellum shares to every 13 shares of Entra. We will also pay approximately NOK 54.4 to the shareholders. That's the simple thing. Simply selling to Blackstone, uplift of 20%, and then increasing the bid to Entra to NOK 185. The next slide, please. The rationale behind doing this is, of course, that it gives us a fantastic company. It gives us the possibility to create something that hasn't been done before.
It also creates a possibility to be one of the strongest actors in the Nordics in office and logistics. Looking at the numbers, you can see then that we're creating synergies approximately SEK 300 million. We are creating a portfolio approximately to SEK 132 billion. This gives us a new rating for the Castellum part that will be positive. It will give us the AA target to the total company, the first or largest actor in the Nordics. We also have on the tenant side, creating something where 40% of income coming from the public sector.
On top of that, we are giving us the opportunity to be more active in the logistics sector with the building rights we already have there because we are saving approximately SEK 5 billion in the portfolio, and we are also saving the development pipeline in Stockholm and Gothenburg, especially up to 1 million square meters.
This is not two companies that is in need of doing this. This is two companies that come together to create something fantastic. It's the sustainability champions, it's blue-chip companies, somewhere who is on the top of also creating the next future on PropTech side. The next slide, please. On the next slide, you can see simply what we are selling and uplift on the values. I think it's extremely important to understand, of course, that we are selling only SEK 5 billion if the Entra deal doesn't go through.
Of course, we are targeting the Entra deal, and they are now selling up to in value then SEK 19 billion. This is the 20% uplift from the booked values we have. It is achieved on approximately 4.7%. If anyone thinks they are high, if you can also imagine that this is a mix of different asset quality, and that some of the assets is something that we have had in the back, the new ones we have been building. Someone is not logistics. In our view, it is more office or some is retail. This is a mixed portfolio. The yield is, of course, going from approximately +4% to a little bit +5% in the mixed part of the portfolio. This is showing the value that we are carrying in the existing. Okay, we can take the next slide, please.
The future of logistics in Castellum. With the sales, I think we actually can accelerate being more into new constructions, being a better partner for the existing logistic actors. We already have a development pipeline approximately to 1 million square meters, and we are going to close the next coming years. That combined it is that it gives us opportunity to create almost the same volume that we are selling going forward, up to 1.4 million square meters. As you know, we can create them building approximately at 6.8% plus 7% yield when we're doing new constructions. With this, we have proven that the profit of doing that development is around then 30% and upwards. Next slide, please. The vision of what we're doing is the same as one month ago.
As I said earlier, this is simply something we can't refuse of trying to do. It's creating one of the best that's in there. Blue-chip company in the Nordics on the office and logistics sector. It will create new investment opportunities. We already together in the combined new company have developed a development pipeline that is the largest on office side in Nordics. The sustainable road that is one of the leading ones in Europe, maybe globally. We will also try to create the best PropTech future for these companies and for our customers.
We strongly believe that it's not about buying and selling assets going forward, but actually serving the customers to be attractive on flexibility, on PropTech, on sustainability. This will give us the opportunity. That gives us the opportunity to give that back to the shareholders in some way going forward. Next slide, please. With that, I open for questions from the audience. Thank you.
We have one question here, Henrik. Are you working only with the board or also with owner not on the board?
No, we have been in contact with the largest owners in Castellum and very good process from our side. We had to be on the sideline a little bit during two, three weeks here. In spite of that, we have a very calm and good process.
Another question. How do you intend to address the 50% blocking stake Balder has in Entra, given this new bid is not much higher than their average entry price?
All shareholders is approximately 100,000 shareholders in the two companies, and Balder is one of them, and hopefully they will see the value that we see in doing this deal.
A question here regarding the sold portfolio, the 4.7%. Is the 4.7% yield on the sold portfolio, the net initial yield or the valuation yield? If it's not the net initial yield, what is it? That SEK 13.3 billion, the two different parts.
Yes, it's a net yield, and the combined one is more or less the same as the small portfolio we're selling. There are no differences, and the value uplift is the same on the two parts of the portfolio as well.
A new question. How long would Castellum shareholders need to wait for the target synergies?
Here, but you can calculate it like we did an Norrporten deal. Approximately two years is the calculated time for this.
Yes. We have one more question. Is the 50% loan-to-value long-term target intact after the sale? I can say here that we have the 50% as a policy, but in reality, we also have a rating that says that we should be around or not above 45%, calculated in a more conservative way, of course. That means that is more the guidance. The deal as it is now is more that we target the same LTV as Castellum has today after the deal is done. Since we, of course, dispose a lot of assets, that means that we are going down in the LTV level even further.
That, of course, indicates that we have a lot of liquidity that could be used in the strong balance sheet to do further investment for the new group or give some of it back to our shareholders. Another question. Would you expect the Entra board to be recommending this revised offer?
That is still to be seen. I can only say that during this process, we have had dialogue with the board and the management from Entra.
Another question. What's the lowest acceptance threshold you would be willing to go to if some of the larger Entra holders don't want to accept the bid?
We have one bid out in the market, and it's 90%.
It seems like there are no more questions coming in to us. That was the last one.
Okay. We thank you, everyone, who has been listening this morning, 21st of December 2020, and wish you a Merry Christmas. Thank you very much.