Tritax EuroBox has made its first investment in the Nordics with the acquisition of a SEK 474 mln (€47 mln) asset in the Port of Gothenburg, Sweden.
The freehold asset has a total gross internal area of 28,900 m2 and comprises two purpose-built logistics facilities (one of 16,200 m2 and the other 12,700 m2), located in a prime logistics location in the Port of Gothenburg.
The buildings are fully let to tenants Agility AB, Nordicon AB and Vink Essåplast Group AB, generating a total annual rent of SEK 18.04 mln (€1.79 mln) on leases with a weighted average unexpired lease term of six years. The rent reflects a rate of SEK630 (€62.50) per m2 per annum. All leases are annually indexed to 100% of Swedish CPI.
The acquisition price of SEK 474 mln reflects a net initial yield of 3.6% based on the income from the existing leases, with the opportunity to increase the yield to around 4.25% as the rental levels on the buildings are marked to market levels.
This acquisition forms part of the deployment strategy for Tritax EuroBox following its successful equity raise in March 2021 and subsequent green bond issuance in June 2021.
Nick Preston, fund manager of Tritax EuroBox, commented: ‘We are delighted to acquire our first asset in the Nordics which aligns with our disciplined investment approach and our long term strategic goals. The asset, held freehold, is located in the region’s strongest logistics market, and offers asset management upside through working closely with the occupiers to achieve their business plans and increase rents to market levels.’
