Sagax Expands with French Real Estate Acquisition: Strengthening European Presence

Sweden commercial property investor Sagax makes new French acquisition. Learn how Sagax is expanding its property portfolio and presence in key European markets through recent acquisitions in France, Spain, and Finland.

Sagax, a Sweden leading real estate company, has recently made significant acquisitions in France, Spain, and Finland, expanding its property portfolio and strengthening its presence in key European markets.

In France, Sagax has indirectly acquired 27 percent ownership of a property portfolio consisting of 43 properties with a total lettable area of 285,000 square meters and 902,000 square meters of freehold land. These properties are fully leased to Metro AG, a major player in the wholesale operations in the HORECA segment. With an average remaining lease term of 10.3 years, the portfolio is strategically located in the Paris, Lyon, Lille, and Marseille regions, with an estimated market value of SEK 3,450 million (EUR 307 million). The annual rental income from these properties amounts to SEK 277 million (EUR 25 million) and is indexed to ILC, a standard index for commercial leases in France. Sagax's investment in these properties was made through the acquisition of 27 percent of the shares in the SPV owning the properties, with the shares acquired from Amundi Real Estate.

In addition to its acquisitions in France, Sagax has also acquired two properties in Spain and one property in Finland. These properties have a total lettable area of 25,300 square meters, primarily used for warehouse and industrial purposes. The rental income from these properties is SEK 14 million (EUR 1.2 million) per year, with a 100 percent occupancy rate and an average remaining lease term of 4.6 years. The total investment in these properties amounts to SEK 1,090 million (EUR 97 million), with the transactions already closed.

Sagax's recent acquisitions in France, Spain, and Finland demonstrate the company's commitment to expanding its presence in key European markets and diversifying its property portfolio. With a focus on high-quality properties and strategic locations, Sagax is well-positioned for continued growth and success in the real estate industry.