8 December 2021
AXA IM Alts, a global leader in alternative investments with c. €168 billion of assets under management, announces that it has completed the acquisition of a portfolio of logistics assets spread across Norway, Sweden, Denmark and Finland, from NREP. The transaction has been made on behalf of clients through AXA IM Alts’ market leading Real Assets platform, which is the leading real estate portfolio and asset manager in Europe. Logicenters, NREP’s logistics platform, will continue to operate the facilities.
The 515,000 sqm portfolio comprises a combination of predominantly modern Grade-A last-mile and regional logistics warehouses, which are almost fully occupied with an attractive average lease length in excess of seven years. 16 of the properties are located within the Nordic logistics triangle, which has population of 15 million people and benefits from strong arterial and infrastructure connectivity. The majority of the portfolio by value (57%) is located in Sweden, the Nordic region’s most advanced logistics market, with all of these properties EPC A or B rated. The remainder is split between Norway (19%), Denmark (13%) and Finland (11%) and offers significant scope for ESG enhancements, including improved EPC ratings and the installation of solar panels, in line with AXA IM Alts commitment to seeking to affect positive changes in society through its investments.
The portfolio totals 33 occupiers across a diverse range of sectors, including manufacturing, automotive, clothing and e-commerce. 70% of the portfolio is occupied by a mix of domestic and global high-quality sole tenants, with the majority of these properties serving as the tenant’s key regional hub. The remainder comprises multi-let units, which offer flexible areas to suit a variety of potential occupiers and provide longer-term asset management opportunities through both minor refurbishment and lease events.
The Nordic region is one of the fastest growing e-commerce markets in Europe, with e-commerce penetration expected to reach 25% by 2024, up from 12% in 2019. A scarcity of land, increasing construction costs and supply chain shortages are constricting the pipeline of future stock coming through, underpinning strong rental growth.
This transaction expands AXA IM Alts’ global logistics platform to c. 6 million sqm in 12 countries with a total value of over €7 billion, as the sector remains sought-after on account of favourable supply / demand metrics driven by shifts in worldwide consumption habits.Source: AXA
February 23, 2023
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