The building, which will be environmentally certified according to the Miljöbyggnad Silver standard, is being constructed in a strategic location in Helsingborg on a property SLP has owned for several years, utilizing the significant existing building rights. The site is currently used for truck parking and the agreements for this use are being terminated.

Upon moving in, the tenant will vacate their current premises of approximately 10,600 sqm in another property owned by SLP. The premises becoming vacant are situated in an attractive logistics location, offer good value-add potential—including the possibility of an extension—and command a market level rent. As a result of the transaction, net leasing is positively impacted by approximately 5 million SEK, while SLP’s average lease duration is extended.

”The fact that we can once again meet an existing tenant’s need for larger premises within our own portfolio demonstrates the strength of our business model. The building rights identified at the time of acquisition are now being transformed into a modern logistics facility with a 12-year lease agreement, which extends our average lease duration and strengthens our cash flow. At the same time, the leasing process gives us the opportunity to further upgrade the existing premises, which are situated in a strategic logistics location,” says Filip Persson, CEO of SLP.

The investment is conditional upon obtaining a building permit and is initially being financed with existing funds.