Logistics property specialist Tritax EuroBox has agreed to pay an unnamed institutional investor SEK474 million (€47 million) for a 28,900 sq m asset in the Port of Gothenburg, Sweden, which is home to Scandinavia’s largest container terminal.
The freehold asset has a total gross internal area of approximately 28,900 sqm and comprises two buildings, one of 16,200 sq m and the other 12,700 sq m.
The buildings are fully let to the tenants Agility, Nordicon and Vink Essåplast Group, 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.
Tritax said in a statement that 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.
“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,” said Tritax Eurobox fund manager Nick Preston. “The Port of Gothenburg has a clear plan for growth, with significant infrastructure investment committed, further strengthening this location.”
Tritax to extend Mango’s Barcelona distribution centre
Meanwhile, Tritax Eurobox is about to start work on a 93,931 sq m extension of fashion retailer Mango’s global distribution centre asset at Lliçà d’Amunt, Barcelona.
All necessary consents have been obtained and construction work will start imminently.
Tritax acquired the centre off-market in September 2018 for €150 million, reflecting a net initial yield of 5.0%, in an off-market deal that included an adjacent expansion plot.
Tritax is financing construction of the extension at a yield on cost of 8.8%, for an estimated capital commitment of €31.5 million.
The extension is required in response to the growth of Mango’s global e-commerce operations and will increase the facility’s gross internal area to approximately 280,000 sq m, including mezzanine floors.
Practical completion is targeted for November 2022. The extension will be constructed to a BREEAM Very Good standard.
“It has been a difficult and unpredictable year for retail, but thanks to the major commitment we have made to our online channel over the last 20 years, we were well placed to adapt to the challenging circumstances that the pandemic presented,” Mango CEO Tony Ruiz said. “We have accelerated our digital transformation by implementing a number of initiatives which substantially grew our online channels, recording increases of around 100% in many of our major markets including France, Italy and Portugal.”
Ruiz said Mango’s online platform turns over €766 million, which is 36% up on the previous year. He added that online now represents 42% of total group turnover, compared to 24% in 2019.