M&G Real Estate has acquired two prime logistics assets near Stockholm, marking a combined €64 mln investment into the Nordics logistics sector.
Both acquisitions were made on behalf of the M&G European Property Fund managed by David Jackson and Simon Ellis.
The assets are based in the established logistics and warehousing submarkets of Segeltorp and Brunna, both on the highways connecting to Stockholm city centre. Myrfast is a 15,060 m2 building, acquired off market for €46 mln. It is 100% let to a single tenant, Postnord, and is located close to the entrance and exit to the new Stockholm ring road, due for completion in 2026.
Lyckobrunnen is a new development, located to the northwest of Stockholm close to the E18, E4 highways and Arlanda Airport. The building, which completed in 2019, has been constructed to BREEAM Excellent sustainability standards and is multi-let to Swedish trade, real estate and investment company Orvelin Group, luxury architectural and interior design materials group Cosentino and Engelmanns AB, a Swedish cheese wholesaler.
Jackson commented: 'It is rare to find these kind of assets so close to the inner city of Stockholm and especially with an investment grade tenant such as PostNord with a long lease. Both assets are positioned in very strategic locations to service the increasing demand for last mile supply chain capability as a result of growth in e-commerce and consumer expectations for ever faster delivery times in Sweden. We still see logistics portfolios trading at a premium therefore our strategy is to continue buying these assets one by one to achieve higher returns for our investors. We are keen to identify further opportunities in this segment across the Nordic region in all relevant strategic logistics locations.'
