Tritax EuroBox has completed the acquisition of the land and has agreed to finance the development of a 17,832 m² prime logistics asset in Sweden for SEK 402 million (€39.4 million).).
The asset is located next to the 13,181 m² development opportunity in Rosersberg, Sweden acquired by the company in September 2021, and is being acquired at a net initial yield 4.0% (based on the 12-month rental guarantee).
As soon as the purchase of the land is finalized and during the construction phase, the company will receive from the developer – Verdion – a return income equivalent to the agreed net initial return. Construction is expected to begin in June 2022, with practical completion expected in May 2023.
Verdion is also developing the company’s adjacent development asset in Rosersberg, which received planning permission in December 2021. Construction on this site will begin in February 2022 and discussions are already underway with potential occupants.
The sites are located close to Stockholm Arlanda Airport, on the E4 highway to downtown Stockholm. The group said occupant demand for logistics space in Rosersberg is among the highest in Sweden.
Alina Iorgulescu, Deputy Fund Manager of Tritax EuroBox, said: “This investment reinforces our transition to a higher proportion of value-added assets by investing in development opportunities alongside established development partners. We are particularly pleased to increase our exposure to the Stockholm logistics market where we are seeing growing demand from professionals and investors. We have already made good progress on our adjacent asset, obtaining planning permission in December, which means we look forward to starting on site in a few weeks.
“Today’s off-market financing is at an attractive yield, which also offers the opportunity to capture the strong rental value and capital growth evident in this leading logistics market and deliver sustainable value to our stakeholders.”
EBOX: Tritax EuroBox acquires the third Swedish asset
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