Swedish Real Estate Giant Sagax Invests in French Properties: Huge Portfolio Deal Revealed

In 2022, the seller achieved an extraordinary milestone, with revenues exceeding SEK 150 billion, accompanied by a workforce comprising over 50,000 highly skilled and dedicated employees. This remarkable achievement reflects the seller's unwavering commitment to excellence and their ability to consistently deliver outstanding results.

Part of their success story lies in their exceptional portfolio of properties, which encompasses a total lettable area of 69,000 square metres, coupled with an expansive 1,460,000 square metres of freehold land. These properties have been thoughtfully developed, meticulously designed as light industrial premises, complete with integrated office spaces, ample parking facilities, and outdoor storage options. 

Strategically situated in prominent locations throughout the western region of France, including vibrant cities like Bordeaux, Toulouse, and Rennes, these properties offer unparalleled accessibility and convenience for businesses of all sizes. This strategic positioning not only provides ease of access for logistical operations but also ensures proximity to thriving commercial hubs, enhancing the potential for substantial business growth and collaboration.

Sagax, the esteemed investor in these properties, has made a monumental commitment to this venture, amounting to an impressive SEK 930 million, inclusive of transaction costs. The rental income from these properties is nothing short of astounding, amounting to the equivalent of SEK 70 million annually. What's more, this rental income is fully indexed to ILAT, a widely recognized and standard index defining commercial lease terms in France, ensuring stability and fairness for all parties involved.

Notably, the occupancy rate of these properties stands proudly at a staggering 100%. This outstanding achievement is a testament to the desirability and attractiveness of these properties, sought after by business owners and corporations alike. Such a high occupancy rate further solidifies the immense potential and value of these properties, making them an exceptional investment opportunity for all discerning and astute investors.

With an average lease term of an impressive 11.7 years, tenants can enjoy long-term stability and security, further bolstering their confidence in these exceptional properties. Moreover, tenants hold the unilateral right to extend the lease terms for up to 30 years, underscoring the mutually beneficial nature of this arrangement. By taking on the responsibility of covering all operating costs, in addition to the rent, tenants can focus on their core business operations, unburdened by any additional financial strain.

Additionally, Sagax, the visionary investor behind these properties, diligently ensures their long-term maintenance, guaranteeing the sustainability and impeccable condition of these valuable assets. Their commitment to providing top-notch facilities and maintaining the properties at the highest standards further enhances their desirability and rentability.

It's important to note that in France, municipalities hold a right of first refusal in property transactions. However, we have taken all necessary measures to anticipate and secure the required approvals for this exceptional venture. We expect a smooth closing during the end of the fourth quarter of 2023, with no significant impediments hindering the completion of this remarkable acquisition.

This landmark acquisition will be aptly reported within Sagax's France segment, solidifying their significant presence and influence within the French real estate market. This strategic maneuver highlights Sagax's confidence in the potential of the French market and serves as a testament to their unwavering commitment to innovation, growth, and excellence within the industry.

Finally, it is with great excitement and anticipation that Sagax has agreed, subject to certain conditions, on the possibility of extending this groundbreaking sale-and-leaseback transaction. The proposed extension would represent an additional investment of an impressive SEK 485 million, mirroring the terms and conditions of the initial agreement. Should this extension materialize, it will be announced separately, signaling yet another significant milestone and reaffirming Sagax's strong position within the industry.

In conclusion, the acquisition of these exceptional properties is a testament to Sagax's vision, expertise, and ability to identify lucrative investment opportunities. These properties possess an allure that is second to none, owing to their prime locations, thoughtfully designed spaces, and outstanding amenities. With an unwavering commitment to maintaining these properties and a dedication to fostering long-term tenant satisfaction, Sagax continues to solidify their position as a leading force within the industry.

Swedish Real Estate Giant Sagax Invests in French Properties: Huge Portfolio Deal Revealed