Tritax EuroBox agrees new lease of asset in Sweden
Tritax EuroBox secures new lease of speculatively developed asset in Sweden
Tritax EuroBox plc (the "Company"), which invests in Continental European logistics real estate assets, has agreed a new five-year lease at the first phase of its two-unit development in Rosersberg, a prime logistics location near Stockholm. The inflation-linked lease has been secured with a leading Scandinavian photovoltaic company.
Summary
· The letting is for the 5,007 sqm unit at the Company's 13,611 sqm two-unit development, well-located close to Arlanda airport, an established logistics and industrial hub 32km north of Stockholm.
· The five-year green lease will commence in March 2024, with 100% CPI indexation, reviewed annually and includes a further five-year extension option.
· The rent agreed is 3% above the Estimated Rental Value (ERV) as at September 2023 and 20% above the underwrite level.
· The building includes electric vehicle charging and other sustainability features that reduce its environmental impact, along with the opportunity for a roof-mounted solar PV scheme. The development is targeting a BREEAM Very Good rating.
· The combination of this letting and the recent second letting at Settimo Torinese reduces the portfolio ERV vacancy rate to 4.3%, down from 5.5% at 30 September 2023.
Background
This recently completed speculative forward funding development was acquired by the Company in August 2022 from Verdion, with each unit subject to a 12-month rental guarantee from practical completion. The strategic location is adjacent to Motorway E4, providing immediate access to Arlanda airport - Sweden's largest and busiest passenger and freight airport.
Company commentary
James Charlesworth, Asset Management Director of Tritax EuroBox plc, commented:
"This letting successfully demonstrates our strategy of both identifying good speculative development opportunities and attracting strong customers to our high-quality, sustainable buildings, developed close to major population centres and with good transport connections. Securing this lease above ERV and rental guarantee levels to a new customer in a growing sub-sector, underlines the attractiveness of our assets. We look forward to welcoming the tenant to the portfolio."
Further information
Tritax EuroBox plc
+44 (0) 20 8051 5070
Phil Redding - CEO
Mehdi Bourassi - CFO
Charles Chalkly - Investor Relations
Kekst CNC (Media enquiries)
Tom Climie / Guy Bates
+44 (0) 7760 160 248 / +44 (0) 7581 056 415
tritax@kekstcnc.com
Notes:
Tritax EuroBox plc invests in and manages a well-diversified portfolio of Continental European logistics real estate. These assets fulfil crucial roles in logistics and distribution supply chains, and are located in established logistics markets near major population centres across core Continental European countries.
Our high-quality portfolio is highly sustainable, offers predictable and predominantly inflation-linked income and has opportunities for capital growth through active asset management. These attributes underpin our ability to generate attractive returns for Shareholders over the long term.
The Manager, Tritax Management LLP, has assembled a full-service, pan-European capability for the Company, combining in-house leadership and strategic expertise with close partnerships with leading European developers and asset managers.
The Manager comprises a skilled, diverse team of real estate professionals with expertise across investment, asset management, development, finance, business analysis, research and communications. This is supplemented with specialist, on-the-ground developers, and asset and property managers with strong market standings in the Continental European logistics sector.
Further information on the Company is available at: tritaxeurobox.co.uk
The Company's LEI is: 213800HK59N7H979QU33.
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