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Tritax EuroBox PLC said Wednesday it has agreed to a speculative development scheme to acquire 95,000 square metres of development land in Sweden.
The deal, agreed alongside Nordic developer MIGS, will cost SEK223 million, about €21.4 million.
‘The project is a brownfield redevelopment opportunity in a prime Swedish logistics market in the Fosie industrial area south of Malmo where there is a shortfall of available development land,’ Tritax explained. ‘Demand from tenants and occupiers in this highly sought-after area is strong, given its location between Malmo'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, Scandinavian food processing group Atria Group. Atria will continue to occupy the existing site, paying a rent of €1.3 million per annum until their planned relocation, no later than February 2024.
‘This is Tritax EuroBox's first development scheme and has a timeline to practical completion by February 2025 at the latest,’ the company added. ‘This transaction allows the company to access future development profits, whilst enjoying an attractive income yield during the planning and permitting phases.’
Shares in Tritax EuroBox were down 0.2% in London on Wednesday morning at 104.40 pence each.
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