The land has the zoning permits and potential to develop 661,450 sqm of logistics gross lettable area (GLA), for an estimated total investment of more than SEK 10 billion (c. EUR 1.0 billion).
Robert Dobrzycki, CEO & Co-Owner Panattoni Europe and India, said:
“Panattoni is accelerating its expansion across West European markets and this record Swedish land transaction is probably the most spectacular entry into a new market we’ve achieved so far. The deal was sealed just six months after Panattoni opened its first Swedish office in Gothenburg, and it is a tribute to the skills of the local team and our ability to quickly deploy institutional capital at scale when opportunities present themselves.”
Panattoni plans to speculatively develop 19 warehouses on seven greenfield sites. Sixteen of these will be built in the Mälardalen region in Strängnäs, Nykvarn and Enköping west of Stockholm, all next to the E18 and E20 motorway. Two developments will be located at Rosersberg, 30 km north of central Stockholm on the E20 motorway. One development will be located in Staffanstorp 6 km east of Malmö close to E6 motorway.
Jan Persson, CEO at Kilenkrysset, said: “Panattoni's values are in line with Kilenkrysset and we share many similarities. Carl Panattoni, Panattoni’s founder and owner, is the same age as me, and much like Kilenkrysset, Panattoni was also founded in 1986. With our sizeable land bank of approximately 30 million square meters and our long-term commitments in detailed planning, as well as the construction and financing of our areas' infrastructure, we do not have the capacity to build and develop on all our land on our own. With Panattoni, we have found a partner who will fulfill both Kilenkrysset's and our municipalities’ wishes: a rapid and large-scale development plan which, in combination with the municipalities' positive attitude, is estimated to create thousands of jobs. Panattoni's investment will be an important addition to the development of the Mälardalen region for many years to come.”
Fredrik Jagersjö Rosell, Managing Director Panattoni Sweden, said:
”The prime development land Panattoni acquired from Kilenkrysset sits in the heart of Sweden’s Golden Triangle concentration of warehousing and distribution hubs in the southern regions framed by the cities of Stockholm, Gothenburg and Malmö. The Golden Triangle accounts for 80% of the country’s business and population, its most important ports, largest airports and main transport routes. With high demand for logistics space still outpacing record supply in the Swedish market last year and vacancy rates at very low levels, we’re confident that our forthcoming developments will tap into the strong appetite of occupiers for modern sustainable warehousing.”
DLA Piper and WSA (Wesslau Söderqvist Advokatbyrå) was the legal advisor for Panattoni on the transaction.
For Kilenkrysset, the agent was Angermann and the lawyers Advokatfirman Glimstedt.