Tritax EuroBox PLC Acquisition (5026J)
April 27 2022 - 2:00AM
UK Regulatory
TIDMEBOX TIDMBOXE
RNS Number : 5026J
Tritax EuroBox PLC
27 April 2022
First speculative development project for Tritax EuroBox
ACQUISITION OF LOGISTICS DEVELOPMENT SITE IN PRIME SWEDISH
LOGISTICS MARKET IN MALMÖ FOR SEK 223 MILLION
Tritax EuroBox plc ("Tritax EuroBox" or the "Company"), which
invests in high-quality, prime logistics real estate strategically
located across continental Europe, has, in partnership with
established Nordic developer MIGS, entered into a speculative
development scheme to acquire 95,000 sqm of development land for
SEK 223 million (EUR21.4 million).
The project is a brownfield redevelopment opportunity in a prime
Swedish logistics market in the Fosie industrial area south of
Malmö where there is a shortfall of available development land.
Demand from tenants and occupiers in this highly sought-after area
is strong, given its location between Malmö's two major ring roads
that provide good links to the rest of Sweden and Denmark.
The site is being acquired from the current occupier, Atria
Group, a leading Scandinavian food processing group. Atria Group
will continue to occupy the existing site, paying a rent of SEK 13
million (EUR1.25 million) per annum until their planned relocation,
no later than February 2024. This will allow redevelopment of the
site to commence, with completion targeted in early 2025.
The 95,000 sqm site will support construction of over 60,700 sqm
of prime logistics space, with an aggregate rental value expected
to be in excess of SEK 46 million (EUR4.4 million) per annum. The
acquisition price for the existing asset is SEK 223 million
(EUR21.4 million) and the expected future construction cost is
circa SEK 680 million (EUR65.3 million). The value of the scheme on
completion is expected to be over SEK 1.2 billion (EUR115
million).
This sustainable development will aim to offset carbon emissions
during construction, with the completed building targeting a
minimum certification of BREEAM Very Good.
This is Tritax EuroBox's first development scheme and has a
timeline to practical completion by February 2025 at the latest.
This transaction allows the Company to access future development
profits, whilst enjoying an attractive income yield during the
planning and permitting phases.
Alina Iorgulescu, Tritax EuroBox, commented:
"We are delighted to be announcing our first development
project, located in one of the most sought after logistics markets
in the Nordics. This exemplifies our strategic aim in building up a
portfolio of high quality, sustainable logistics assets in prime
markets, through partnering with local development specialists such
as MIGS, adopting a disciplined approach to development and
allowing the Company to access development profits.
This is our first off-market deal with MIGS and we are looking
forward to developing our relationship with them on future
projects.
This is the fourth Swedish investment for Tritax EuroBox,
bringing our total amount invested in the country to over SEK 1.4
billion. The powerful structural trends in the Swedish market find
demand outstripping supply, providing us with long-term embedded
value. We see significant potential in this site in southern Malmö
, which is experiencing significant demand from occupiers, while
available land remains highly constrained."
Notes
The exchange rate SEK:EUR used was from 25(th) April 2022, being
10.42:1
For further information please contact:
Tritax Group
+44 (0) 20 8051 5070
Nick Preston
Mehdi Bourassi
Jo Blackshaw (Investor Relations)
Kekst CNC (Media enquiries)
Neil Maitland/Tom Climie
07971 578 507 / 07760 160 248
tritax@kekstcnc.com
The Company's LEI is: 213800HK59N7H979QU33.
Notes:
Tritax EuroBox plc (ticker: EBOX (Sterling) and BOXE (Euro))
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
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