SLP carries out its largest new construction project so far - signs a 15-year lease with Ahlsell for 60,000 sqm
SLP has today signed an agreement to acquire a property of 280,000 square meters in Hallsberg and signed a 15-year lease regarding an environmentally certified new construction of just over 60,000 square meters. The estimated transaction value amounts to just over SEK 800 million and would imply an annual rent of approximately SEK 50 million. The lease, which runs for 15 years, is signed with Ahlsell Sweden and is indexed with CPI. Access to the property takes place preliminary during the third quarter and the new construction is expected to be completed at the turn of the year 2024/2025.
"This is SLP's absolutely largest project to date, and also a significant project for the entire real estate segment. We have chosen to work with a so-called "open book procedure", which minimizes our risk and means that together with the tenant we will minimize the costs of the construction project without compromising on quality. The final annual rent is set as a function of the total cost of the project. The lease agreement with Ahlsell corresponds to nearly 10 percent of our entire current rental value, and will greatly extend our average rental duration," says Tommy Åstrand, CEO of SLP.
Ahlsell, which is one of the largest employers in the Örebro region, has previously acquired the land from the municipality through a company, obtained building permit for the construction and procured a construction contract. The company is now acquired by SLP and signs a 15-year lease with Ahlsell Sweden. SLP is already a property owner in Hallsberg, which is a priority logistics location.
"SLP was one of many Swedish and foreign real estate companies that were in discussion with Ahlsell and we are very happy and satisfied that they chose us as landlord and partner in this transaction, which is one of the largest in our segment. The property, which covers a total of 280,000 square meters of land, also provides the opportunity for further extensions," says Tommy Åstrand, CEO of SLP.
"After a broad and structured process, we have chosen to collaborate with SLP, which is a fast-growing company with a focus on expanding with its existing customers and putting sustainability in focus. Our logistics center in Hallsberg has long been the heart of Ahlsell's Swedish operations. Through today's agreement, we can continue to build on our journey of success by developing and improving our offer and serving the market even better for a continued offensive Ahlsell", says Daniel Johansson, Logistics Director Ahlsell Sweden.
Access takes place preliminary during the third quarter and is conditional on ongoing property formation gaining legal force. Preparations for construction will begin shortly and the estimated date for completion is the turn of the year 2024/2025. The investment will be financed with existing cash and secured bank financing.
For further information, please contact:
Tommy Åstrand, CEO of SLP, telephone: +46 705 455 997
Before its publication, this information was inside information and is such that Swedish Logistic Property AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, on 30 June 2023 at 13:15 p.m. CEST.
About SLP – Swedish Logistic Property
Swedish Logistic Property - SLP – is a Swedish property company that acquires, develops, and manages logistic properties with sustainability in focus. Value growth is created through development of the properties which are located in Sweden’s most important logistic hubs. The property portfolio comprises a lettable area of approx. 860,000 sqm. SLP is a partner that takes responsibility and through this creates value for both tenants as well as for the company and its shareholders. SLP’s share of series B is listed at Nasdaq Stockholm Mid Cap. For further information about SLP: slproperty.se
This disclosure contains information that Swedish Logistic Property is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 30-06-2023 13:15 CET.
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