Tritax EuroBox acquires Gothenburg logistics asset for SEK474m

Tritax EuroBox, an investor in prime logistics real estate strategically located across continental Europe, has acquired a SEK474 million (EUR471 million) asset in the Port of Gothenburg, Sweden.

The asset, held freehold, has a total gross internal area of approximately 28,900 sq m and comprises two purpose built logistics facilities (one of 16,200 sq m and the other 12,700 sq m), located in the heart of the prime logistics location in the Port of Gothenburg. 
 
The Port of Gothenburg has been ranked as the most attractive logistics location in the Nordics for 20 years by Intelligent Logistik, the leading Nordic logistics media platform. There are currently no vacant logistics buildings in the port area. The Port is home to Scandinavia’s largest container terminal, which is forecast to grow over the coming years.
 
The buildings are fully let to the tenants Agility AB, Nordicon AB and Vink Essåplast Group AB, generating a total annual rent of SEK18.04 million (EUR1.79 million) on leases with a weighted average unexpired lease term of six years. The rent reflects a rate of SEK630 (EUR62.50) psm per annum. All leases are annually indexed to 100 per cent of Swedish CPI.
 
The acquisition price of SEK474 million reflects a net initial yield of 3.6 per cent based on the income from the existing leases, with the opportunity to increase the yield to around 4.25 per cent as the rental levels on the buildings are marked to market levels. 
 
This acquisition forms part of the deployment strategy for Tritax EuroBox following the successful equity raise in March 2021, and the subsequent Green Bond issuance in June 2021.
 
Nick Preston, Fund Manager of Tritax EuroBox, says: “We are delighted to acquire our first asset in the Nordics which aligns with our disciplined investment approach and our long term strategic goals. The asset, held freehold, is located in the region’s strongest logistics market, and offers asset management upside through working closely with the occupiers to achieve their business plans and increase rents to market levels. 
 
:We expect to see continued strong market rental growth in the Port of Gothenburg, due to the natural constraint of land supply in the port area, and the increasing demand from occupiers.  The Port of Gothenburg has a clear plan for growth, with significant infrastructure investment committed, further strengthening this location.”