Tamar European Industrial Fund has completed the sale of an asset in Sweden to a Swedish investor for a gross asset price of GBP7.94 million, reflecting a net initial yield of 11 per cent.
The price represents a 1.6 per cent discount to the latest fund valuation. The purchaser was granted a 10 month vendor loan of GBP0.9 million.
The asset is located in Kungsbacka, 30 kilometres south of Gothenburg, and comprises 25,020 sqm of warehousing and ancillary offices. The current occupancy is 99 per cent with the main tenant, Blondie Logistics, accounting for 58 per cent of the passing rent on a lease which expires in December 2018. The other main tenant is Santa Maria AB, whose rent represents 28 per cent of the total and whose lease has a break option in October 2015. The weighted average period until next lease breaks is just under four years.
Rob Brook, managing director of Patrizia Financial Services Ltd, investment manager to TEIF, says: “This transaction follows the completion of various asset management activities, including lease renegotiations, and is in line with our stated intention to exit the Nordic markets.
“One Nordic asset remains in the fund, and we are actively marketing it for sale in order to complete the fund’s exit.”