M&G Real Estate acquires two Swedish logistics assets in key last mile hubs
M&G Real Estate, a solutions provider for global real estate investors, has acquired two prime logistics assets, Myrfast in Segeltorp and Lyckobrunnen near Stockholm, marking a combined EUR64 million investment into the Nordics logistics sector.
Both acquisitions were made on behalf of the M&G European Property Fund managed by David Jackson and Simon Ellis.
The assets are based in the established logistics and warehousing submarkets of Segeltorp and Brunna, both on the highways connecting to Stockholm city centre. Myrfast, is a 15,060 sq m building, acquired off market for €46 million. The building is 100 per cent let to a single tenant, Postnord and is located close to the entrance and exit to the new Stockholm ring road, due for completion in 2026.
Lyckobrunnen is a new development, well located to the northwest of Stockholm close to the E18, E4 highways and Arlanda Airport. The building, which completed in 2019, has been constructed to BREEAM Excellent sustainability standards and is multi-let to Swedish trade, real estate and investment company Orvelin Group, luxury architectural and interior design materials group Cosentino and Engelmanns AB, a Swedish cheese wholesaler.
Jackson says: “It is rare to find these kind of assets so close to the inner city of Stockholm and especially with an investment grade tenant such as PostNord with a long lease. Both assets are positioned in very strategic locations to service the increasing demand for last mile supply chain capability as a result of growth in e-commerce and consumer expectations for ever faster delivery times in Sweden.
“We still see logistics portfolios trading at a premium therefore our strategy is to continue buying these assets one by one to achieve higher returns for our investors. We are keen to identify further opportunities in this segment across the Nordic region in all relevant strategic logistics locations.
Marc Reijnen, Heads of Investment and Asset Management at M&G Real Estate, adds: “The logistics sector continues to undergo structural improvement as a result of the well documented positive fundamentals affecting the sector, and we have continued to increase our allocation to the sector across Europe. In Sweden, take up for logistics space continues to outstrip supply, with strong domestic demand for e-commerce but also an international export market in high tech and manufacturing industries. These strong fundamentals should support positive rental growth over the medium term.’