Panattoni, the European arm of Panattoni Development Company, has acquired SEK3.1bn (€300m) worth of industrial land in Sweden.
Panattoni said it has acquired seven sites in Stockholm and Skåne totalling 121.3ha from Swedish real estate firm Kilenkrysset.
The land has the zoning permits and potential to develop 661,450sqm of logistics assets worth around SEK10bn, Panattoni said, adding that it plans to speculatively develop 19 warehouses on the greenfield sites.
Robert Dobrzycki, the CEO and co-owner of Panattoni Europe and India, said the firm is accelerating its expansion across West European markets and this “record Swedish land transaction is probably the most spectacular entry into a new market we’ve achieved so far”.
Dobrzycki said the deal was sealed just six months after Panattoni opened its first Swedish office in Gothenburg.
Fredrik Jagersjö Rosell, a managing director at Panattoni in Sweden, said the land acquired from Kilenkrysset sits in the heart of Sweden’s Golden Triangle concentration of warehousing and distribution hubs in the southern regions framed by the cities of Stockholm, Gothenburg and Malmö.
Rosell said the Golden Triangle accounts for 80% of the country’s business and population, its most important ports, largest airports and main transport routes.
“With high demand for logistics space still outpacing record supply in the Swedish market last year and vacancy rates at very low levels, we’re confident that our forthcoming developments will tap into the strong appetite of occupiers for modern sustainable warehousing,” Rosell said.
Jan Persson, Kilenkrysset’s CEO, said: “With our sizeable land bank of approximately 30m sqm and our long-term commitments in detailed planning, as well as the construction and financing of our areas’ infrastructure, we do not have the capacity to build and develop on all our land on our own.
“With Panattoni, we have found a partner who will fulfil both Kilenkrysset’s and our municipalities’ wishes: a rapid and large-scale development plan which, in combination with the municipalities’ positive attitude, is estimated to create thousands of jobs. Panattoni’s investment will be an important addition to the development of the Mälardalen region for many years to come.”
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