Tritax EuroBox PLC Forward funding acquisition nr Stockholm, Sweden (7838L)
15 Septiembre 2021 - 1:00AM
UK Regulatory
TIDMEBOX TIDMBOXE
RNS Number : 7838L
Tritax EuroBox PLC
15 September 2021
15 September 2021
Second Swedish acquisition, strengthening platform in the
Nordics
FORWARD FUNDING ACQUISITION OF 13,181 SQM LOGISTICS PROPERTY IN
PRIME LOCATION JUST NORTH OF STOCKHOLM, SWEDEN FOR SEK 284 MILLION
(EUR27.9 MILLION (1) )
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 conditional
contracts have been entered into to acquire the land and provide
forward funding for the development of a new high specification and
sustainable logistics asset for a total consideration of SEK 284
million (EUR27.9 million (1) ) in a prime location just north of
Stockholm, Sweden.
This is the Company's second acquisition in Sweden and comprises
a 13,181 sqm logistics facility consisting of two separate units of
8,204 sqm and 4,977 sqm to be constructed between November 2021 and
December 2022. The development is being undertaken by Verdion, a
highly experienced European industrial and logistics real estate
specialist, which has recently expanded into the Nordic area
opening offices in Sweden and Denmark and has a growing number of
projects in the Nordics. The land purchase is conditional on
receiving the building permit which is expected in the
near-term.
The buildings are located in the established logistics market of
Rosersberg, one of the best logistics hubs in Sweden, strategically
situated close to Stockholm Arlanda Airport on the E4 motorway to
Stockholm. Given its strategic location, market rents in Rosersberg
are amongst the highest in Sweden and its importance as a hub is
expected to increase further in coming years.
This acquisition is structured as a forward funding development
opportunity, where the Company will buy the land initially and then
fund the construction of the buildings. The total development cost
is capped at SEK 284 million (EUR27.9 million(1) ). 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.
The Company will also benefit from a 12-month rental guarantee
of SEK 12 million (EUR1.18 million (1) ) from completion of
construction which is estimated to be in December 2022. This rental
guarantee is in line with the current estimated market rental value
per annum assuming a rent of SEK 907 (EUR89 (1) ) per sqm.
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 be retained as asset manager.
As is standard in the Nordic markets, the ESG credentials of the
development will be strong. 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 acquisition price of SEK 284 million reflects a net initial
yield of 4.2% based on the income from the rental guarantee.
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."
Notes
(1) Exchange rate assumed at 1SEK = EUR .0.098
For further information please contact:
Tritax Group
+44 (0) 20 8051 5070
Nick Preston
Mehdi Bourassi
Jo Blackshaw (Investor Relations)
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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END
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September 15, 2021 02:00 ET (06:00 GMT)
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