Tritax EuroBox continues to expand its presence in the Swedish market with a €47m acquisition. The asset held freehold has a total gross internal area of approximately 28,900m² and comprises two purpose-built logistics facilities (one of 16,200m² and the other 12,700m²), 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 Agility AB, Nordicon AB and Vink Essaplast Group AB, generating a total annual rent of €1.79m on leases with a weighted average unexpired lease term of six years. The rent reflects a rate of €62.50psm per annum. All leases are annually indexed to 100% of Swedish CPI.
Nick Preston, Fund Manager of Tritax EuroBox, commented: “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.”