Tritax EuroBox plc (LON:EBOX), which invests in Continental European logistics real estate assets, has agreed a new five-year lease at the first phase of its two-unit development in Rosersberg, a prime logistics location near Stockholm. The inflation-linked lease has been secured with a leading Scandinavian photovoltaic company.
Summary
· The letting is for the 5,007 sqm unit at Tritax EuroBox’s 13,611 sqm two-unit development, well-located close to Arlanda airport, an established logistics and industrial hub 32km north of Stockholm.
· The five-year green lease will commence in March 2024, with 100% CPI indexation, reviewed annually and includes a further five-year extension option.
· The rent agreed is 3% above the Estimated Rental Value (ERV) as at September 2023 and 20% above the underwrite level.
· The building includes electric vehicle charging and other sustainability features that reduce its environmental impact, along with the opportunity for a roof-mounted solar PV scheme. The development is targeting a BREEAM Very Good rating.
· The combination of this letting and the recent second letting at Settimo Torinese reduces the portfolio ERV vacancy rate to 4.3%, down from 5.5% at 30 September 2023.
Background
This recently completed speculative forward funding development was acquired by the Company in August 2022 from Verdion, with each unit subject to a 12-month rental guarantee from practical completion. The strategic location is adjacent to Motorway E4, providing immediate access to Arlanda airport – Sweden’s largest and busiest passenger and freight airport.
Company commentary
James Charlesworth, Asset Management Director of Tritax EuroBox plc, commented:
“This letting successfully demonstrates our strategy of both identifying good speculative development opportunities and attracting strong customers to our high-quality, sustainable buildings, developed close to major population centres and with good transport connections. Securing this lease above ERV and rental guarantee levels to a new customer in a growing sub-sector, underlines the attractiveness of our assets. We look forward to welcoming the tenant to the portfolio.”
