Hines, through its European core-plus property fund, has acquired its first asset in Sweden through a sale and leaseback.

The global real estate fund manager is investing SEK1.35bn (€119m) on behalf of its Hines European Property Partners (HEPP) to buy a production facility being built in Jönköping from kitchen furniture company Nobia.

The transaction included Nobia entering a 20-year rental agreement on the property with HEPP, with an option to extend the agreement for a further 20 years. 

Construction of the 129,500sqm facility began in 2021 and is scheduled for completion in autumn 2024. 

The transaction represents Hines’s entry into Sweden, as the firm grows its presence in northern Europe. Hines, which now operates in 14 European countries, has been acquiring assets in Norway, Denmark and Finland since 2015.

James Robson, country head in the Nordics at Hines, said: “We have been waiting patiently for the right opportunity to enter the Swedish market and this represents an excellent fit for Hines’ ambitions to grow its portfolio of high-quality industrial assets in great locations across the continent.

“It is a transaction which suits both parties and we look forward to continuing our relationship with Nobia as our tenant.”

Jon Sintorn, president and CEO of Nobia, said: “By selling and leasing back the property, we strengthen our financial position while simultaneously becoming long-term tenants in the new highly automated kitchen factory, which will serve as the hub for Nobia’s Nordic operations.”

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