Tritax EuroBox secures new lease near Stockholm

Tritax EuroBox announced a new lease agreement for a five-year term on Thursday at its two-unit development in Rosersberg, near Stockholm.

The FTSE 250 company said the lease was secured with a leading Scandinavian photovoltaic company, marking a significant addition to the company's portfolio.

It covers a 5,007 square metre unit within the 13,611 square metre development, strategically located in close proximity to Arlanda airport, a well-established logistics and industrial hub 32 kilometres north of Stockholm.

The lease is set to start in March, and includes 100% consumer price index (CPI) indexation, subject to annual review, along with an option for a further five-year extension.

Tritax said the agreed rent for the lease stands at 3% above the estimated rental value (ERV) as of September, and 20% above the underwrite level.

The building itself was designed with sustainability in mind, featuring electric vehicle charging stations and other eco-friendly attributes to minimise its environmental footprint.

Additionally, it said the development was striving for a BREEAM ‘Very Good’ rating.

Tritax said the lease, coupled with a recent second letting at Settimo Torinese, reduced its portfolio’s ERV vacancy rate to 4.3%, improving from the 5.5% it reported at the end of September 2023.

The Rosersberg development was acquired by Tritax EuroBox in August 2022 from Verdion, with both units covered by a 12-month rental guarantee from practical completion.

“This letting successfully demonstrates our strategy of both identifying good speculative development opportunities and attracting strong customers to our high-quality, sustainable buildings, developed close to major population centres and with good transport connections,” said asset management director James Charlesworth.

“Securing this lease above ERV and rental guarantee levels to a new customer in a growing sub-sector, underlines the attractiveness of our assets.

“We look forward to welcoming the tenant to the portfolio.”

At 0855 GMT, shares in Tritax EuroBox were up 0.34% at 58.9p.

Reporting by Josh White for Sharecast.com.