Swedish Logistic Property: SLP is constructing an extension of approximately 23,300 sqm and extending the lease by 10 years
SLP will construct an extension of approximately 23,300 sqm on the property Rönnedal 1 in Ulricehamn after the existing tenant, Logistikpartner i Ulricehamn AB, which is part of Boxflow Group AB, exercised its option to increase the area. In connection with the extension, the lease for the entire property is being extended by 10 years from the planned occupancy on August 1, 2027.
The property was acquired in June 2024 and currently comprises approximately 24,000 sqm of lettable area. The lease included an option for the tenant to construct additional area at a predetermined rental level. In connection with the acquisition, it was agreed that the seller would pay for and arrange for the extension and that SLP would pay an additional purchase price as a function of the estimated operating net income and an agreed yield. The additional purchase price, which will be paid upon completion, amounts to approximately SEK 117 million and the annual rental value for the extension amounts to approximately SEK 8.5 million. The project is conditional on authority decisions.
"It is very positive that our tenant chooses to expand within the property and extend the agreement. The structure established at the time of the acquisition ensures an attractive return while strengthening cash flow and the average rental duration in the portfolio," says Filip Persson, CEO of SLP.
"The extension creates good conditions for our continued development in Ulricehamn. By increasing our capacity of new, efficient and sustainable logistics space, we are strengthening our capacity and competitiveness. It is especially great that large parts of the expansion are already planned for additional customer volumes. We appreciate the long-term and close cooperation with SLP, which is important in making this possible", says Oscar Andersson, CEO of Boxflow Group AB.
For further information, please contact:
Filip Persson, CEO of SLP, telephone: +46 733 27 27 57
About SLP - Swedish Logistic Property
Swedish Logistic Property - SLP - is a Swedish property company that acquires, develops, and manages logistic properties with sustainability in focus. Value growth is created through development of the properties which are located in Sweden's most important logistic hubs. The property portfolio comprises a lettable area of approx. 1,500,000 sqm. SLP is a partner that takes responsibility and through this creates value for both tenants as well as for the company and its shareholders. SLP's share of series B is listed at Nasdaq Stockholm Mid Cap. For further information about SLP: slproperty.se.