The portfolio comprises c. 122,000 sq m of net lettable space and is fully occupied by PostNord TPL AB, a Swedish and Danish government owned third party logistics provider. Two units, representing 75 percent of the total income, offer prime Grade A space and are let on long, 15 year leases, whilst the remaining two assets are let on terms with 4 years remaining, presenting an potential opportunity to refurbish this space and grow ERV.
Norrköping is the fourth largest metropolitan area in Sweden and is home to the Port of Norrköping. The city, which is located close to Stockholm and other important submarkets, such as Gothenburg and Malmö, also serves as a crossroad for the E22 and E4 motorways with 40 percent of the population, or 4 million people accessible within 2.5 hours.
Barings manages a portfolio totalling approximately 16,500 sq m in Scandinavia across a range of sectors including offices, retail and residential with approximately 25,000 sq m of space currently under construction in Stockholm and, following this latest acquisition, a 122,000 sq m logistics portfolio. Barings’ investment strategy in the region is focused on logistics investments in the top ten logistics locations in the Nordics; selected office assets with turn around potential in the Nordic capital cities; and high quality residential buildings located in attractive commuter areas near to Stockholm, Copenhagen and Helsinki.
Gunther Deutsch, Managing Director, Head of Real Estate Transactions – Europe at Barings, says:
“This transaction demonstrates that, in spite of COVID-19, Barings continues to be active in the investment market, particularly in the logistics space where we are currently pursuing nine potential transactions. Having invested more than €600 million in logistics across Europe in 2019, this acquisition in Sweden is a great step forward in the region. Building on our existing experience in this area, one of our main focuses in 2020 will be sale and lease back transactions, where we can establish long term relationships with our occupiers. In Sweden, we will continue to explore the logistics, office and residential sectors across the risk spectrum from core to value add.”
CBRE advised the seller, Postnord, in the transaction, together with Linklaters.
Hampus Otterhäll, Associate Director, Industrial & Logistics, CBRE Sweden comments:
"I am very excited to have signed our second successful sale within the logistics segment in a short period of time. This demonstrates further evidence that the logistics segment stands relatively resilient in the turmoil created by Covid-19. The portfolio attracted a great interest from investors and has been an exciting process for CBRE to work on. Thank you to the team at PostNord for you trust of confidence and congratulation to Barings for acquiring a very strong portfolio.”