GREYKITE European Real Estate Fund I (the “Fund”) has signed contracts to acquire a 94,400 sqm multi-let industrial (MLI) portfolio in Sweden, which will seed Lagerhome, its newly-formed European MLI platform, targeting c.€1 billion of investment over the next 18-24 months.
The 27-property portfolio is located in established industrial sub-markets around Sweden’s two largest cities, Stockholm (55 percent by lettable area) and Gothenburg. The portfolio is being acquired from Regio, a commercial real estate company backed by the Third Swedish National Pension Fund (AP3). In line with GREYKITE’s proven strategy of working with best-in-class local partners, the portfolio will be managed by minority joint venture partner Broadgate Asset Management, a leading Nordic real estate operating company.
The portfolio is currently 90 percent occupied, with a diversified lease profile across more than 120 tenants. Located in highly accessible infill sub-markets, where the loss of industrial land to alternative uses is underpinning the sector’s attractive rental growth prospects, the portfolio offers significant value-added potential through active leasing and property-level investment initiatives.
In addition to expanding in Sweden, Lagerhome is targeting investments in similarly strategic and supply-constrained industrial sub-markets in the UK and Germany and has a strong pipeline in exclusivity.
The transaction follows on from the formal launch of GREYKITE and the Fund in March 2024. This latest strategy is the fifth in the fund and builds on its significant logistics exposure across major Western European markets. GREYKITE specialises in real estate and corporate investments across a series of asset classes which demonstrate durable fundamentals in select European markets.
Michael Abel, Founder and CEO of GREYKITE, commented: “As we continue to construct a diversified portfolio within our high conviction areas of living, industrial and digital, launching a European MLI platform is a natural next step. The sector is displaying an attractive combination of growing tenant demand, and with replacement costs significantly above acquisition costs, an undersupply of well-connected, flexible space in Europe’s high-growth urban centres will persist. Lagerhome aims to capitalise on these supportive fundamentals to quickly scale into one of Europe’s leading MLI portfolios.”
Dan Valenzano, Senior Partner of GREYKITE, added: “Launching Lagerhome with this initial acquisition is consistent with GREYKITE’s disciplined focus on scalable investment themes driven by resilient income growth, working alongside best-in-class JV partners like Broadgate. The ongoing macro volatility continues to present a highly attractive opportunity for proactive, well-funded managers with deep pan-European networks.”
