The logistics assets portfolio in Norrköping, Sweden 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% 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% of the population, or 4 million people accessible within 2.5 hours.
”The Swedish logistics sector continues to present attractive opportunities as ecommerce penetration..”
“The Swedish logistics sector continues to present attractive opportunities as ecommerce penetration, which is ahead of southern Europe but behind that of the UK and Germany, continues to grow, with the structural drivers supporting it having further accelerated as a result of the COVID-19 pandemic. This portfolio, which has been acquired for our core strategy, is particularly attractive providing an interesting mix of both predominantly core long lease income and the opportunity to grow income and value in the medium term,” said Thorsten Slytå, Managing Director, Head of Scandinavia at Barings.