Swedish property company Sagax has entered into a sale and leaseback agreement to acquire 19 warehouses in France for SEK 485 mln (€41.6 mln).
This deal comes only weeks after the acquisition of 47 logistics properties in France for SEK 930 mln (€79 mln).
The 19 additional properties have a total lettable area of 25,000 m2 and 450,000 m2 of freehold land. The properties are concentrated in the metropolitan areas of Paris, Lyon, and Marseille.
The properties, located in the metropolitan areas of Paris, Lyon, and Marseille, are light industrial spaces, as well as offices, parking, and outdoor storage.
The properties generate annual rental income of SEK 35 mln (€3 mln), which is fully indexed to ILAT, a standard index for commercial leases in France. The properties are all occupied and have an average lease term of 11.1 years.
The tenant has the right to extend the lease terms by up to 30 years and is responsible for all operating costs, such as utilities and insurance, in addition to the rent. Sagax is responsible for the long-term maintenance of the properties.
The necessary approvals from the relevant authorities are expected to be obtained soon, and the transaction should be completed by the end of Q4 2023.
Sagax has also acquired one property in Finland for SEK 137 mln (€12 mln) and one property in the Netherlands for SEK 23 mln (€2 mln) in two separate transactions. The properties have a total lettable area of 16,900 m2 and mainly consist of premises for warehouse and industrial purposes.
The properties generate SEK 20 mln (€1.7 mln) in annual rental income and are 96% occupied. The average lease term is 5.3 years, and closing should take place in Q4 2023.
On 30 September, Sagax's property holdings amounted to 4,170,000 m², distributed over 811 properties.