Tritax EuroBox has completed the acquisition of the land and agreed to fund the development of a 17,832 sqm prime logistics asset in Sweden for SEK 402m (€39.4m).
The asset is situated adjacent to the 13,181 sqm development opportunity in Rosersberg in Sweden acquired by the company in September 2021, and is being acquired at a net initial yield of 4.0% (based on the 12-moth rental guarantee).
From completion of the land purchase and during the construction phase, the company will receive from the developer – Verdion – an income return equivalent to the agreed net initial yield. Construction is due to commence in June 2022, with practical completion targeted in May 2023.
Verdion is also developing the company’s adjacent development asset in Rosersberg, which received a building permit in December 2021. Construction at this site will commence in February 2022 and discussions are already underway with potential occupiers.
The sites are located close to Stockholm Arlanda Airport, on the E4 motorway to Stockholm city centre. The group said occupier demand for logistics space in Rosersberg is amongst the highest in Sweden.
Alina Iorgulescu, assistant fund manager of Tritax EuroBox, said: “This investment reinforces our shift to a higher proportion of value add assets by investing in development opportunities alongside established development partners. We are particularly pleased to be increasing our exposure to the Stockholm logistics market where we are seeing growing occupational and investor demand. We have already made good progress at our adjacent asset, obtaining the building permit in December, meaning we are looking forward to starting on site in a few weeks’ time.
“Today’s off-market funding is at an attractive yield, which also offers the opportunity to capture the strong rental and capital value growth evident in this prime logistics market and to deliver sustained value to our stakeholders.”
EBOX : Tritax EuroBox acquires third Swedish asset