TIDMEBOX TIDMBOXE
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 (EUR39.4 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
(EUR39.4 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 (EUR1.6 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
(1) Exchange rate assumed at 1 SEK = EUR0.098
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
tritax-maitland@maitland.co.uk
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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