Tritax EuroBox plc announced that it has completed the acquisition of the land and agreed to fund the development of a 17,832 sqm prime sustainable logistics asset for SEK 402 million (€39.4 million). The asset is situated adjacent to the 13,181 sqm development opportunity in Rosersberg in Sweden acquired by the Company in September 2021. The investment of SEK 402 million reflects a net initial yield of 4.0% based on the income from a 12 month target rental guarantee of SEK 16.4 million (€1.6 million) from completion of construction.

From completion of the land purchase and during the construction phase, the Company will receive from the developer an income return equivalent to the agreed net initial yield. This is the Company's third investment in Sweden and second in Rosersberg, one of the most established Swedish logistics hubs, just north of Stockholm. Held freehold, this 27,562 sqm site will accommodate a 17,832 sqm prime logistics facility consisting of two separate units.

Strong ESG credentials will be at the forefront of the asset's design and build. The development is targeting a minimum BREEAM Very Good certification, and the construction will include a range of energy saving initiatives and staff wellbeing measures. The development is being undertaken by Verdion, a highly experienced European industrial and logistics real estate specialist.

Construction is due to commence in June 2022, with practical completion targeted in May 2023. Verdion is also developing the Company's adjacent development asset in Rosersberg, which was acquired in September 2021 and received a building permit in December 2021. Construction at this site will commence in February 2022 and discussions are already underway with potential occupiers.

The site is strategically situated close to Stockholm Arlanda Airport, on the E4 motorway to Stockholm city centre. Given its strategic location, occupier demand for logistics space in Rosersberg is amongst the highest in Sweden and its importance as a hub is expected to increase further in the coming years. Due to the strength of the local leasing market, the Company is confident that it will be able to lease the units quickly and benefit from any increased value that a new lease may create.

Verdion will assist the Company with the letting based on pre-agreed leasing criteria with an incentive mechanism. Verdion will also be retained as asset manager.