Verdion and Tritax EuroBox plc to partner on logistics development in Sweden
Verdion and Tritax EuroBox plc, which invests in high-quality, large, sustainable prime logistics real estate strategically located across Continental Europe, have today announced plans to develop a €27.9 million (SEK 284 million) logistics asset on the northern outskirts of Stockholm.
The 13,181 sq m (141,880 sq ft) facility will comprise two buildings of 8,204 sq m (88,308 sq ft) and 4,977 sq m (53,572 sq ft) respectively on a strategic site in Rosersberg, on the E4 motorway between Stockholm city centre and Stockholm Arlanda Airport. Both parties are attracted by the strategic location, with Roserberg’simportance as a logistics hub expected to increase further in coming years, and market rents currently amongst the highest in the country.
Tritax EuroBox will acquire the site and forward fund the development, with the purchase price reflecting a net initial yield of 4.2%. Verdion will develop the site and act as asset manager following leasing and completion.
It will be Tritax EuroBox’s 18th asset, and its second in Sweden. For Verdion, it is the latest in a growing number of Nordics projects, including two major logistics parks close to Copenhagen and a site for BMW’s Nordics distribution outside Malmö. It is also the third partnership for Verdion and Tritax EuroBox, following the completion in 2020 of a specialist food distribution facility for HAVI close to Hanover.
Michael Hughes, CEO of Verdion, said: “The Nordics logistics market offers enormous potential, and this project is a significant step forward in our plans to invest and develop in the region. Urban logistics is a huge growth area and, alongside our strategic parks and specialist build to suit facilities, will be a major focus for our business over the coming years. We are very pleased to be working again with Tritax EuroBox, not only aligning our focus on the Swedish market but ensuring that ESG considerations are an important part of the emerging plans.”
Alina Iorgulescu , Assistant Fund Manager of Tritax EuroBox, commented: “We are delighted to acquire our second asset in Sweden, following the acquisition of the Gothenburg asset in June this year, building up our presence in this important market, which we expect to continue to perform well due to strong fundamentals. Tenant demand is strong and land supply is constrained in the prime markets in Sweden such as Stockholm and Gothenburg where we are investing.
“Acquiring assets using a forward funding structure is an effective way of accessing the best assets in the best locations at prices discounted to the market. We expect both assets to perform well and deliver good value to our shareholders.”
The site will be developed speculatively to a high technical specification to ensure maximum operational efficiency, low occupational costs and long-term durability. Both partners are committed to creating an asset with strong ESG credentials, with the development designed to target a minimum certification of BREEAM Very Good, including a range of energy saving initiatives and staff wellbeing measures.
Construction is expected to start in Q4 this year following the building permit process, and to complete in Q4 2022.