Logistics REIT Tritax EuroBox said on Monday that it has completed the acquisition of the land and agreed to fund the development of a 17,832 m2 sustainable logistics asset in Sweden for SEK 402 mln (€39.4 mln).
The asset is situated adjacent to the 13,181 m2 development opportunity in Rosersberg in Sweden acquired by the Company in September 2021.
The investment of SEK 402 mln reflects a net initial yield of 4.0% based on the income from a 12 month target rental guarantee of SEK 16.4 mln from completion of construction. From completion of the land purchase and during the construction phase, the company will receive from the developer an income return equivalent to the agreed net initial yield.
This is the Company’s third investment in Sweden and second in Rosersberg, one of the most established Swedish logistics hubs, just north of Stockholm. Held freehold, the 27,562 m2 site will accommodate a 17,832 m2 prime logistics facility consisting of two separate units.
The development is targeting a minimum Breeam Very Good certification.
The development is being undertaken by developer Verdion, with construction due to commence in June 2022, and practical completion targeted in May 2023.
Verdion is also developing the company’s adjacent development asset in Rosersberg, which was acquired in September 2021 and received a building permit in December 2021. Construction at this site will commence in February 2022 and discussions are already underway with potential occupiers.
Verdion will assist the company with the letting based on pre-agreed leasing criteria with an incentive mechanism. Verdion will also be retained as asset manager.
‘This investment reinforces our shift to a higher proportion of value add assets by investing in development opportunities alongside established development partners,’ said Alina Iorgulescu, assistant fund manager of Tritax EuroBox.
Michael Hughes, CEO of Verdion, said: ‘The Nordic region is an important focus for Verdion, with a strong e-commerce led occupier market driving demand for new high grade urban logistics product. The greater Stockholm region is particularly interesting for us, with its fast growing resident population and important infrastructure improvements. Verdion will continue to pursue its various investment and development strategies across the wider Nordic region including strategic logistics parks, built to suit and value add acquisitions.’
It is the fourth partnership for Verdion and Tritax EuroBox, following the completion in 2020 of a specialist food distribution facility for HAVI close to Hanover.
