AXA IM Alts has completed the acquisition of a portfolio of 20 logistics assets spread across Norway, Sweden, Denmark and Finland, from local player NREP.
Financial details were not disclosed.
The transaction was made on behalf of clients through AXA IM Alts’ real assets platform. Logicenters, NREP’s logistics platform, will continue to operate the facilities.
The 515,000 m2 portfolio comprises a combination of predominantly modern Grade-A last-mile and regional logistics warehouses, which are almost fully occupied with an average lease length in excess of seven years. 16 of the properties are located within the Nordic logistics triangle, which has a population of 15 million people and benefits from strong connectivity.
John O'Driscoll, global chief investment officer, head of investment, AXA IM Alts, commented: 'This is a rare opportunity to acquire a high quality and large portfolio in one of Europe’s fastest growing logistics markets where we have an increasing conviction.
'With its mix of single let, tenant critical assets and multi-let, flexible properties, it offers an attractive mix of day one income and longer-term capital appreciation through an active leasing and refurbishment strategy.
'The Nordic logistics sector is now the third largest in Europe, with new warehouse supply failing to keep up with rapid e-commerce penetration.'
The majority of the portfolio by value (57%) is located in Sweden, the Nordic region’s most advanced logistics market, with all of these properties EPC A or B rated. The remainder is split between Norway (19%), Denmark (13%) and Finland (11%) and offers significant scope for ESG enhancements, including improved EPC ratings and the installation of solar panels.
The portfolio totals 33 occupiers across a diverse range of sectors, including manufacturing, automotive, clothing and e-commerce. 70% of the portfolio is occupied by a mix of domestic and global sole tenants. The remainder comprises multi-let units.
The Nordic region is one of the fastest growing e-commerce markets in Europe, with e-commerce penetration expected to reach 25% by 2024, up from 12% in 2019.
