(STOCKHOLM) - Hines, a global real estate investment, development, and property manager, has acquired its first asset in Sweden, on behalf of its Hines European Property Partners (HEPP) core-plus fund.
A sale and leaseback agreement has been secured with one of the largest European kitchen companies, the publicly listed Nobia, on its new production facility currently under construction in Jönköping, an established industrial center in the south of the country on the shore of lake Vättern.
The two parties have agreed a sale price of SEK 1,350 million with Nobia entering a 20-year rental agreement on the property with HEPP with an option to extend the agreement for a further 20 years.
Construction of this 129,500 square-meter facility began in 2021 and is scheduled for completion in autumn 2024. The project is targeting a BREEAM Excellent rating, consistent with HEPP’s objectives to meet the demand for environmentally and socially sustainable buildings.
While the project will become Nobia’s key manufacturing facility, producing custom-built kitchens for some of the industry’s leading brand names, the asset is designed so that it may also be used for traditional logistics and distribution uses.
Nobia is listed on the Stockholm Stock Exchange and operates across seven countries. It is the parent company for many well-known brands, such as Marbodal, HTH, Sigdal, uno form and Magnet.
Hines’ entry into Sweden, which represents the latest milestone in its growth in northern Europe, means Hines now operates in 14 European countries. Since 2015, Hines has acquired assets in Norway, Denmark and Finland, strengthening and managing its Nordic portfolio from its Copenhagen base.
The transaction is part of Hines’ continued execution of its strategy to significantly grow its industrial, data center and logistics platform in key strategic locations across Europe. Hines completed approximately €770 million of industrial and logistics transactions across the continent in the 12 months to 30 September 2023, bringing its industrial and logistics assets under management to €3.8 billion, with €951 million in the pipeline, as of 30 September 2023.
James Robson, country head - Nordics, at Hines, commented: “We have been waiting patiently for the right opportunity to enter the Swedish market and this represents an excellent fit for Hines’ ambitions to grow its portfolio of high-quality industrial assets in great locations across the continent. It is a transaction which suits both parties and we look forward to continuing our relationship with Nobia as our tenant.”
Jon Sintorn, President and CEO of Nobia, said: “By selling and leasing back the property, we strengthen our financial position while simultaneously becoming long-term tenants in the new highly automated kitchen factory, which will serve as the hub for Nobia's Nordic operations.”
Hines was advised by Törngren Magnell & Partners, Rambøll, Newsec and PwC with White & Case acting as legal advisor and Savills Sweden Investment AB as transaction advisor to Nobia.
Hines is a global real estate investment, development and property manager. The firm was founded by Gerald D. Hines in 1957 and now operates in 30 countries. We manage nearly €87.1B¹ in high-performing assets across residential, logistics, retail, office, and mixed-use strategies. Our local teams serve 790 properties totaling nearly 25 million square meters globally. We are committed to a net zero carbon target by 2040 without buying offsets. To learn more about Hines, visit www.hines.com and follow @Hines on social media.
¹Includes both the global Hines organization and RIA AUM as of June 30, 2023.
About Hines European Property Partners (HEPP)
HEPP is a diversified open-ended real estate core-plus fund focused on key European markets. HEPP will leverage Hines' vertically integrated platform, seeking to create alpha and deliver superior risk-adjusted returns. The Fund will seek to acquire and develop sustainable assets across a range of sectors including logistics, office, living – residential, student and senior housing. HEPP was launched in Q2 2022.