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(Alliance News) - Tritax EuroBox PLC on Monday said it has completed the acquisition of a logistics site in Sweden for EUR39.4 million.
The London-based property company said it has also agreed to fund the development of the 17,832 square metre asset.
Tritax EuroBox said the investment reflects a SEK402 million, about GBP32.6 million, net initial yield of 4% based on the income from a 12-month target rental guarantee of SEK16.4 million.
This is the company's third investment in Sweden, Tritax EuroBox explained. Development of the asset is being undertaken by Verdion Group Ltd, a London-based real estate developer. Construction is due to commence in June 2022 and completion is targeted in May 2023.
Alina Iorgulescu, assistant fund manager of Tritax EuroBox, said: "This investment reinforces our shift to a higher proportion of value add assets by investing in development opportunities alongside established development partners. We are particularly pleased to be increasing our exposure to the Stockholm logistics market, where we are seeing growing occupational and investor demand. We have already made good progress at our adjacent asset, obtaining the building permit in December, meaning we are looking forward to starting on site in a few weeks' time."
Shares in Tritax EuroBox were up 0.5% at 110.50 pence on Monday morning in London.
By Heather Rydings; heatherrydings@alliancenews.com
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