Prologis has acquired 295,000 m2 of prime logistics real estate in Sweden for €366 mln, in what the company describes as the ‘final piece of the puzzle’ of a Swedish strategy spanning three years.
The deal comprises 11 modern logistics properties spread across Scandanavia’s largest national market, of which 70% are located in the Gothenburg and Stockholm regions, with the remainder in Oresund and Malardalen.
The purchase significantly strengthens the US logistics giant’s presence in Sweden by creating and expanding two existing Prologis logistics parks to more than 120,000 m2 each, to serve customers’ advanced requirements.
Prologis set itself a target to double its Swedish portfolio by 2020, though with no hard investment targets.
On behalf of Prologis European Logistics Fund (PELF), the company paid vendor Logistikfastigheter Sverige AB €366 mln for the acquisition. Logistikfastigheter Sverige is a joint venture founded in 2016 between Swedish pension fund Alecta and Bockasjo, a local property company. The sale to Prologis is for the joint venture’s entire holdings, representing a successful exit. Cushman & Wakefield advised the vendor.
The portfolio comes with a variety of tenants, both domestic and international, and in sectors ranging from 3PL and automotive to e-commerce and more. Volvo, Schenker, Postnord and Bring, and e-commerce customers such as Sportamore are among the tenants.
Commenting on the investment, Prologis’ Bram Verhoeven, senior vice president and regional head of Prologis’ northern European arm, called it ‘rare’ and a ‘fantastic opportunity'.
He said: ‘In 2016 we set a goal to develop our presence in Sweden and we have been acquiring - not only there, but across the whole of Europe. This deal is the last piece in the jigsaw and we have achieved it ahead of schedule too, which is very satisfying. If you look back at the work of the past three years, our portfolio is in great shape.'
'It is rare that a portfolio like this comes to the market, so it is a fantastic opportunity. These are new buildings, built in just the past two or three years and located in prime locations and hot-spot areas, close to other properties already in our portfolio. So this really is highly complementary to our existing strategy.’
Sweden is a strong market and its attractiveness might help trigger a rethink of dating opinions about Nordic regions, Verhoeven said.
‘Stockholm is one of the fastest growing logistics centres in the European region. The market continues to climb, with high demand for modern logistics real estate and historically low vacancy rates. There is no (Scandinavian) price premium; the same trends we see in the EU are also present in Sweden. Perhaps in the past, Sweden has been seen as following the EU a bit, but now it should be seen as much more of a core market, and we believe this is long term.’
