Last checked at 
16 Jun 2021 07:00
16 June 2021
First Nordic investment for Tritax EuroBox
ACQUISITION OF LOGISTICS ASSET IN PRIME LOCATION IN THE PORT OF GOTHENBURG, SWEDEN FOR SEK474 MILLION (€47 MILLION)
Tritax EuroBox plc ("Tritax EuroBox" or the "Company") (ticker: EBOX (Sterling) and BOXE (Euro)), which invests in high-quality, prime logistics real estate strategically located across continental Europe, announces that it has agreed the acquisition of a SEK474 million (€471 million) asset in the Port of Gothenburg, Sweden.
The asset, held freehold, has a total gross internal area of approximately 28,900 sqm and comprises two purpose built logistics facilities (one of 16,200 sqm and the other 12,700 sqm), 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 (€1.79 million) on leases with a weighted average unexpired lease term of six years. The rent reflects a rate of SEK630 (€62.50) psm per annum. All leases are annually indexed to 100% of Swedish CPI.
The acquisition price of SEK474 million reflects a net initial yield of 3.6% based on the income from the existing leases, with the opportunity to increase the yield to around 4.25% 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, 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."
Notes
1 Exchange rate assumed at 1SEK = €0.099
For further information please contact:
Tritax Group+44 (0) 20 8051 5070
Nick PrestonMehdi Bourassi
Jo Blackshaw (Investor Relations)
Maitland/AMO (Media inquiries)James Benjamin+44 (0) 7747 113 930tritax-maitland@maitland.co.uk
The Company's LEI is: 213800HK59N7H979QU33.
Notes:
Tritax EuroBox plc invests in and manages a well-diversified portfolio of well-located Continental European logistics real estate assets that are expected to deliver an attractive capital return and secure income to shareholders. These assets fulfil key roles in the logistics and distribution supply-chain focused on the most established logistics markets and on the major population centres across core Continental European countries.
Occupier demand for Continental European logistics assets is in the midst of a major long-term structural change principally driven by the growth of e-commerce. This is evidenced by technological advancements, increased automation and supply-chain optimisation.
The Company's Manager, Tritax Management LLP, has assembled a full-service European logistics asset management capability including specialist "on the ground" asset and property managers with strong market standings in the Continental European logistics sector.
Further information on Tritax EuroBox plc is available at www.tritaxeurobox.co.uk