Investor and developer Hines has bought a kitchen production facility in Sweden for SEK1,350 million/€118 million and now operates in 14 European countries.
Hines acquired the new Nobia production facility in Jönköping on behalf of its Hines European Property Partners (HEPP) core-plus fund in a sale and leaseback agreement.
Construction of the 129,500 square-meter facility began in 2021 and is scheduled for completion in autumn 2024. The aim is to achieve a BREEAM Excellent rating, in line with HEPP’s objective of environmentally and socially sustainable buildings.
The rental agreement is for 20 years with an option to extend for a further 20 years.
Key manufacturing facility
While the kitchen production facility in Sweden will become Nobia’s key manufacturing facility, producing custom-built kitchens for some of the industry’s leading brand names, the asset can also be used for traditional logistics and distribution.
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.
Significant growth in Europe
The transaction is part of Hines’ strategy to significantly grow its industrial, data center and logistics platform in key European locations. Hines completed approximately €770 million of industrial and logistics transactions across Europe 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.
James Robson, country head – Nordics, at Hines, says, “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, says, “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 was founded by Gerald D Hines in 1957 and operates in 30 countries.
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