Tritax EuroBox to acquire Swedish development land for €21.4m – Tritax EuroBox (EBOX) has, in partnership with Nordic developer MIGS, entered into a speculative development scheme to acquire 95,000 sqm of development land for SEK 223 million (€21.4m).
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. Demand from tenants and occupiers in this highly sought-after area is strong, given its location between Malmö’s two major ring roads that provide good links to the rest of Sweden and Denmark.
The site is being acquired from the current occupier, Atria Group, a leading Scandinavian food processing group, who will continue to occupy the site, paying a rent of SEK 13 million (€1.25m) a year until their planned relocation, no later than February 2024. This will allow redevelopment of the site to commence, with completion targeted in early 2025.
The 95,000 sqm site will support construction of over 60,700 sqm of prime logistics space, with an aggregate rental value expected to be in excess of SEK 46 million (€4.4m) per year. The acquisition price for the existing asset is SEK 223 million (€21.4m) and the expected future construction cost is circa SEK 680 million (€65.3m). The value of the scheme on completion is expected to be over SEK 1.2 billion (€115m).
This is EBOX’s first development scheme and has a timeline to practical completion by February 2025 at the latest.
Alina Iorgulescu, Tritax EuroBox, said: “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 our first off-market deal with MIGS and we are looking forward to developing our relationship with them on future projects.”
EBOX : Tritax EuroBox to acquire Swedish development land for €21.4m