Tritax EuroBox (Tritax EuroBox) has joined forces with Nordic developer MIGS to enter into a speculative development scheme to acquire 95,000 m2 of development land in Malmö, Sweden.
The project is a brownfield redevelopment opportunity in a prime Swedish logistics market in the Fosie industrial area south of Malmö, where there is a shortfall of available development land.
The site is being acquired from the current occupier, Atria Group, a Scandinavian food processing group. Atria Group will continue to occupy the existing site until no later early 2024. This will allow redevelopment of the site to commence, with completion targeted in early 2025.
This is Tritax EuroBox’s first development scheme and allows the company to access future development profits, while enjoying an attractive income yield during the planning and permitting phases. The sustainable development will aim to offset carbon emissions during construction, with the completed building targeting a minimum certification of BREEAM Very Good.
Tritax were advised by Nordic operating partner NCAP, who will continue as asset managers.
Alina Iorgulescu, Tritax EuroBox, commented: ‘We are delighted to be announcing our first development project, located in one of the most sought after logistics markets in the Nordics. This exemplifies our strategic aim in building up a portfolio of high quality, sustainable logistics assets in prime markets, through partnering with local development specialists such as MIGS, adopting a disciplined approach to development and allowing the Company to access development profits.’
This is the fourth Swedish investment for Tritax EuroBox, bringing the total amount invested in the country to over SEK 1.4 bn.
