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Tritax EuroBox PLC (EBOX)

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Monday 17 January, 2022

Tritax EuroBox PLC

Acquisition of prime logistics asset in Sweden

RNS Number : 5488Y
Tritax EuroBox PLC
17 January 2022
 

17 January 2022

 

 

FORWARD FUNDED DEVELOPMENT OF PRIME LOGISTICS ASSET IN SWEDEN FOR SEK 402 MILLION (€39.4 MILLION 1 )

 

Aligned with our strategy of investing in value-added development opportunities

 

 

Tritax EuroBox plc ("Tritax EuroBox" or the "Company") (ticker: EBOX (Sterling) and BOXE (Euro)), which invests in high-quality, large, sustainable, prime logistics real estate strategically located across Continental Europe, announces that it has completed the acquisition of the land and agreed to fund the development of a 17,832 sqm prime sustainable logistics asset for SEK 402 million (€39.4 million 1 ). The asset is situated adjacent to the 13,181 sqm development opportunity in Rosersberg in Sweden acquired by the Company in September 2021.

 

The investment of SEK 402 million reflects a net initial yield of 4.0% based on the income from a 12 month target rental guarantee of SEK 16.4 million (€1.6 million 1 ) from completion of construction. From completion of the land purchase and during the construction phase, the Company will receive from the developer an income return equivalent to the agreed net initial yield.

 

This is the Company's third investment in Sweden and second in Rosersberg, one of the most established Swedish logistics hubs, just north of Stockholm.  Held freehold, this 27,562 sqm site will accommodate a 17,832 sqm prime logistics facility consisting of two separate units.

 

Strong ESG credentials will be at the forefront of the asset's design and build. The development is targeting a minimum BREEAM Very Good certification, and the construction will include a range of energy saving initiatives and staff wellbeing measures.

 

The development is being undertaken by Verdion, a highly experienced European industrial and logistics real estate specialist. 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 was acquired in September 2021 and 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 site is strategically situated close to Stockholm Arlanda Airport, on the E4 motorway to Stockholm city centre. Given its strategic location, occupier demand for logistics space in Rosersberg is amongst the highest in Sweden and its importance as a hub is expected to increase further in the coming years.

 

Due to the strength of the local leasing market, the Company is confident that it will be able to lease the units quickly and benefit from any increased value that a new lease may create. Verdion will assist the Company with the letting based on pre-agreed leasing criteria with an incentive mechanism. Verdion will also be retained as asset manager.

 

Alina Iorgulescu, Assistant Fund Manager of Tritax EuroBox, commented:

 

"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.  

 

This is also our fourth off-market deal with Verdion demonstrating our close relationship, bringing forward these ESG led, high quality assets in key locations where land supply is constrained.

 

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." 

 

Notes

Exchange rate assumed at 1 SEK = €0.098

For further information please contact:

Tritax Group
+44 (0) 20 8051 5070

Nick Preston
Mehdi Bourassi

Alina Iorgulescu

Maitland/AMO (Media inquiries)
James Benjamin
+44 (0) 7747 113 930
[email protected]

The Company's LEI is: 213800HK59N7H979QU33.

Notes:

Tritax EuroBox plc invests in and manages a well-diversified and sustainable portfolio of well-located Continental European logistics real estate assets that are expected to deliver an attractive capital return and secure income to shareholders. These assets fulfil key roles in the logistics and distribution supply-chain focused on the most established logistics markets and on the major population centres across core Continental European countries.

Occupier demand for Continental European logistics assets is in the midst of a major long-term structural change principally driven by the growth of e-commerce. This is evidenced by technological advancements, increased automation and supply-chain optimisation.

The Company's Manager, Tritax Management LLP, has assembled a full-service European logistics asset management capability including specialist "on the ground" asset and property managers with strong market standings in the Continental European logistics sector.

Further information on Tritax EuroBox plc is available at www.tritaxeurobox.co.uk

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