M&G Real Estate has strengthened its foothold in the Nordics with a €36 mln logistics acquisition in Norrköping, south west of Stockholm.
The investment has been made on behalf of the M&G European Property Fund, managed by David Jackson and Simon Ellis, and takes M&G’s exposure to Swedish logistics to circa €130 mln following two deals earlier this year in the logistics sub-markets of Brunna and Segeltorp.
The 39,063 m2 scheme is fully let to postal company Postnord, which uses it for its third-party logistics operation. Based within Sweden’s logistics triangle between Stockholm and Gothenburg, it has strong rail and sea transport links.
The Nordics have become an increasingly important part of M&G Real Estate’s core European strategy, which earlier this year bought €64 mln of logistics assets in the country. The recent appointment of Robert Göthe as lead investment and asset manager for M&G Real Estate in the Nordics is also expected to help drive further investment activity within the region.
David Jackson, fund manager at M&G Real Estate, said: ‘This is the third Nordic logistics asset that the M&G European Property Fund has recently acquired as part of its strategy to increase exposure to high quality, core logistics facilities. As with the other assets, this comprises a well-specified warehouse in an excellent location, with a strong credit tenant. Compared with other European markets, we anticipate a faster economic recovery to take place in Sweden, which should support rent growth for core logistics assets over the medium term.’
