Tritax EuroBox has acquired a logistics asset in the Port of Gothenburg, Sweden – its first in the Nordics – for SEK474 million (€47m).
The 28,900 sqm property comprises two purpose built logistics facilities (one of 16,200 sqm and the other 12,700 sqm), located in the heart of the prime logistics location in the Port of Gothenburg, which has been ranked as the most attractive logistics location in the Nordics for 20 years by Intelligent Logistik, a leading Nordic logistics media platform.
There are currently no vacant logistics buildings in the port area, which is home to Scandinavia’s largest container terminal.
The buildings are fully let to the tenants Agility AB, Nordicon AB and Vink Essåplast Group AB, generating a total annual rent of SEK18.04 million (€1.79m) on leases with a weighted average unexpired lease term (WAULT) of six years. The rent reflects a rate of SEK630 (€62.50) per sqm per annum. All leases are annually indexed to 100% of Swedish CPI.
The acquisition price reflects a net initial yield of 3.6%, with the opportunity to increase the yield to around 4.25% as the rental levels on the buildings are marked to market levels.
Nick Preston, fund manager, said: “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.
“We expect to see continued strong market rental growth in the Port of Gothenburg, due to the natural constraint of land supply in the port area, and the increasing demand from occupiers. The Port of Gothenburg has a clear plan for growth, with significant infrastructure investment committed, further strengthening this location.”
EBOX : Tritax EuroBox acquires first asset in the Nordics