Real estate investment manager Barings has acquired four logistics assets in Norrköping, Sweden, in a sale and leaseback transaction worth €92 mln.
The portfolio, which was bought on behalf of institutional investors, comprises 122,000 m2 of net lettable space and is fully occupied by PostNord TPL, a Swedish and Danish government-owned third-party logistics provider.
Two units, representing 75% of the total income, offer prime Grade A space and are let on long, 15 year leases, while the remaining two assets are let on terms with 4 years remaining, presenting an potential opportunity to refurbish the space.
Barings manages a portfolio totalling 16,500 m2 in Scandinavia across a range of sectors including offices, retail and residential with approximately 25,000 m2 of space currently under construction in Stockholm and, following this latest acquisition, a 122,000 m2 logistics portfolio.
Barings’ investment strategy in the region is focused on logistics investments in the top 10 logistics locations in the Nordics; selected office assets with turn-around potential in the Nordic capital cities; and high-quality residential buildings located in attractive commuter areas near to Stockholm, Copenhagen and Helsinki.
Barings is currently pursuing nine potential transactions in the logistics space, adds Gunther Deutsch, managing director, head of Real Estate Transactions – Europe at Barings. ‘Having invested more than €600 mln in logistics across Europe in 2019, this acquisition in Sweden is a great step forward in the region. Building on our existing experience in this area, one of our main focuses in 2020 will be sale and lease back transactions, where we can establish long term relationships with our occupiers.’
‘The Swedish logistics sector continues to present attractive opportunities as ecommerce penetration, which is ahead of southern Europe but behind that of the UK and Germany, continues to grow, with the structural drivers supporting it having further accelerated as a result of the Covid-19 pandemic,’ commented Thorsten Slytå, managing director, head of Scandinavia at Barings.
‘This portfolio, which has been acquired for our core strategy, is particularly attractive providing an interesting mix of both predominantly core long lease income and the opportunity to grow income and value in the medium term.’
