With an area of 60,000 m2 and capacity of 5 megawatts, the solar plant in Borås is the largest ever installed on a rooftop in the Nordic region. Behind the investment is real estate investor NREP through its logistics arm, Logicenters, and tenant Speed Group. Solkompaniet has been commissioned to erect the plant and installation of the solar cells has now begun. In addition to meeting the property’s electricity needs, it is estimated that the plant will contribute with 2.6 million kilowatt hours of solar electricity to the grid. The rooftop plant will be by far the largest in Sweden.
According to the Swedish Energy Agency’s statistics, only one solar plant with a capacity of more than 1 megawatt was built in Sweden in 2019. Said plant was built on the ground and has a capacity of 1.5 megawatts. A plant is now being developed which is more than three times this size – the largest rooftop solar plant in the Nordic region. In order to push the transition to renewable energy, Logicenters – the real estate investor NREP’s logistics branch – and its tenant Speed Group are using the rooftop of the 83,000 m2 logistics facility in Viared, outside Borås. It is estimated that the solar cells can produce 4 million kilowatt hours annually, which is equivalent to the annual electricity demand for 1,800 all-electric cars.
“The roofs of large logistics facilities are the ideal location for installing solar plants. Therefore, it feels important that, as developers and owners of logistics properties, we are at the forefront of solar electricity production on our rooftops. We have a number of ambitious sustainability goals, one of which is to operate all our properties using renewable energy. And the demand for solar electricity is high from both companies and individuals – something which we can now fulfill. This facility will meet the tenant’s electricity needs on an annual basis, contribute more renewable electricity to the grid for the inhabitants of Borås to use and can save the environment up to 2,000 tons of CO2 emissions per year”, says Matthias Kettelhoit, Head of Logicenters at NREP.
During 2020, electricity prices have been 40 percent higher in central Sweden than in northern Sweden. It shows very clearly that we have a lack of transmission capacity and too little electricity generation south of the Dalälven river. This means that solar electricity, when it is developed on both roofs and in solar parks, can make an important contribution to the demand for electricity during the summer months in central and southern Sweden.
“The large solar plant will help to meet the increased electricity demand for electricity in southern Sweden with locally produced renewable electricity. An important contribution to the transition to a completely renewable electricity system”, says Johan Öhnell, chairman of Solkompaniet, which will build the plant during the autumn.
The energy tax – an obstacle to widespread solar production
There is great potential to produce solar energy in Sweden. At the same time, current energy taxes penalise those installing large solar plants. Companies generating solar power on their properties are taxed on the electricity they generate when a solar plant exceeds the power limit of 255 kilowatts. The government has recently proposed raising the limit to 500 kilowatts, but the Borås plant is ten times that size. The companies behind the solar plant in Borås have the capacity to contribute electricity from renewable energy sources – but are calling on the government to rethink and remove the limit altogether.
“NREP has a total of 2.5 million square metres of real estate in the Nordic region and is continuing to make climate investments such as solar cell installations on a number of rooftops. But the government has a heavy responsibility in expanding the financial incentives for this type of venture. An energy tax on self-generated solar electricity, used partly by the company itself and partly contributing renewable electricity to the electricity grid, is not the right way to go. We have a number of ambitious sustainability goals, one of which is to operate all our properties using renewable energy, but there must be an increased cooperation between various players in the community“, says Stefan Wallander, CEO of NREP in Sweden.
“Our major customers demand an action plan from Speed Group, in order to contribute to the goal of a maximum increase in global warning of 1.5°C, in line with the Paris Agreement. The installation of the solar plant is our single greatest step towards meeting our customers’ high sustainability requirements,” says Mats Johnson, CEO of Speed Group.
Logicenters is experiencing a strong expansion phase and is in the process of strengthening its team significantly. To support the logistics property company’s continued growth and ambitious goals, Logicenters has acquired six new employees. These include a Sustainability Manager in order to further strengthen Logicenters’ work on sustainability.
Logicenters is today the leading developer and long-term owner of modern and sustainable logistics properties in the Nordic region. Over the past decade, Logicenters has been the most active developer of logistics properties with more than 25 completed projects and over 600,000 square metres of logistics space. Logicenters is now a Nordic team with offices in Sweden, Denmark, Norway and Finland.
The flourishing e-commerce sector over recent years is just one of the reasons why Logicenters has enjoyed a continued increase in its real estate holdings and strong organisational growth. In order to keep pace with this rate of growth, Logicenters is now reinforcing its team by adding a number of new positions. This includes two new Commercial Managers – Ruben Krantz in Norway and Fredrik Nygren in Sweden.
Logicenters, who are connected to RE100 through NREP, also has high sustainability goals and are working continuously to make its properties more energy efficient. For example, earlier this year, construction began on what will be the Nordic region’s largest rooftop solar cell plant, in terms of both area and capacity. With the aim to further strengthen NREPs work on sustainability, Logicenters has now recruited Karin Sjövall in the role of Sustainability Manager, with a main focus on logistics properties. Karin most recently worked at Nordic Property Management as a Project Sustainability Manager.
“It feels really great to team up with even more smart, driven and engaging people who understand what our customers value. I am absolutely positive that our new colleagues will contribute to our continued growth and help to ensure that our high business goals are achieved. Together, we will continue to develop and manage the Nordic region’s most modern and sustainable logistics properties. And we will take Logicenters to the next level”, says Matthias Kettelhoit, Head of Logicenters.
Logicenters has also recruited Andreas Luczak as a Transactions Associate, Erik Karlsson as a Business Analyst and Kalle Nurmos as an Asset Manager. In addition, the logistics property company is currently looking into further recruitments in order to support its rate of growth.
Logicenters is scaling up in Norway by strengthening its team with a key hire to support its future growth. The logistics property provider has recruited Ruben Krantz as Commercial Manager for Logicenters in Norway. Krantz has substantial experience in the logistics industry, most recently as Director of Business Development at Colliers.
Logicenters is expanding significantly in Norway. Through both land acquisitions and new developments in Vestby, just outside Oslo, the logistics property company has expanded its presence in Norway substantially in 2020. In order to support future growth and as part of its continued investment, the company has recruited a Commercial Manager for Logicenters in Norway, Ruben Krantz, who will be responsible for the continued business development in Norway.
“We are delighted with this appointment. Ruben has valuable experience of the industry, a wide network of connections and a good understanding of what our customers need. Logicenters is in a strong growth phase and Ruben will have an important part to play in the company’s future investment in Norway. I would like to warmly welcome Ruben to our team and I look forward to working together onwards,” says Matthias Kettelhoit, Head of Logicenters.
Ruben Krantz has substantial experience and understanding of logistics in Norway. His most recent position was as Director of Business Development at Colliers and prior to that as Business Developer at Malling & Co Markets. He will now become a key person in Logicenters’ team where he will be managing the logistics property provider’s future investments in Norway.
“Joining such a successful and ambitious brand such as Logicenters is something I am very proud of and humbled by. My goal is to support Logicenters growth to being the leading logistics property provider in Norway and I look forward to developing the business further in collaboration with my new team,” says Ruben Krantz.
Logicenters has now, for the second year in a row, won first prize in the Real Estate Brand Award competition, which was announced at the end of last week. The competition ranks more than 1 000 brands within the European real estate industry. In the category “Nordic Developers Logistics”, the award for the strongest brand among developers of logistics properties went to Logicenters in first place.
The Real Estate Brand Awards was arranged for the twelfth year in succession this year. The participating brands compete in various industry-specific categories, with one category consisting of Nordic region brands. Among the Nordic brands in the segment “Nordic Developers Logistics”, Logicenters is ranked as the strongest brand among developers of logistics properties.
The value of all of the factors that companies are ranked by is totalled to a weighted index, the Brand Value. Logicenters achieved a Brand Value score of as high as 90.03, with 100 being the highest value.
“We are very happy to once again have won this award, which is an acknowledgement that all our hard and careful work has been noticed in international circles. Modern logistics properties that are developed with a great sustainability focus by a tight-knit and competent team is our recipe for success, and every one of us at Logicenters should take credit for this achievement. We would also like to thank the European Real Estate Brand Institute for the prestigious award,” says Matthias Kettelhoit, Head of Logicenters.
The survey is largest of its type and is made up of a survey, in which more than 109 000 industry experts are asked about the more than 1 000 participating real estate brands.
For additional information regarding the award:
Logicenters is continuing to strengthen its presence at strategic logistics hubs in the Nordic region. The logistics property company will develop a 12,000 m2 logistics facility in Vestby, Norway. The first tenant, BH Nordic AS, has already signed a lease of 5,800 m2 of the property. The development will begin in March 2020 and the property is scheduled for completion by February 2021. 6,200 m2 will become available for additional tenants.
Logicenters is about to begin developing a property at Torvuttaket 22 in Vestby, just south of Oslo in Norway. The property will have a lettable area of 12,000 m2 and is scheduled for completion in February 2021. The building will be developed in line with Logicenters’ clear focus on sustainability. The property will also be BREEAM certified, which is an environmental certification that places strict requirements on the property’s sustainability performance. There will also be an option to install solar panels on the roof of the property, aiming to provide tenants with green electricity without increasing total cost for the tenants.
The first tenant to sign a lease at the new property is BH Nordic AS, better known as Barnas Hus, a specialist within children and baby products. BH Nordic AS and Logicenters have signed a lease for approximately 5,800 m2 of the property. The remaining 6,200 m2 will be available for additional tenants, as the property is prepared as a multi tenant property.
“We are delighted to offer BH Nordic a new warehouse in Vestby. It is a company that, in our experience, has a serious environmental focus and priorities high quality working environment for its employees, which is reflected in the layout of the new premises and has contributed to develop good solutions. The remaining 6,200 sqm will represent flexible lease structures for tenants with respect to size and contract terms. Vestby is a geographically strategic logistics hub in close proximity to Oslo and we are happy to be able to further strengthen our presence in the area,” says Jørgen Bråten Nordby, Commercial Manager, Logicenters Norway.
“We at BH Nordic and Barnas Hus are very pleased with our new and efficient premises in Vestby. Barnas Hus is Norway’s leading specialist shop for equipment and clothing for babies and children and we will use this logistics centre to further develop our rapidly growing online store and to serve our 25 physical stores with excellent products. BH Nordic and Barnas Hus engage in sustainability, we are Eco-Lighthouse certified, and the new BREEAM certified building represents one of our initiatives within this field. We are looking forward to relocating to Vestby and the entire organization is also looking forward to using efficient and environmentally friendly premises. This property will be perfect for us,” says William Skaar, Finance and IT Director at BH Nordic AS.
After a long period of collaboration, both Menigo Foodservice AB in Strängnäs and Dustin AB i Rosersberg have reconfirmed their trust in Logicenters as a landlord. New leases have been signed for periods of seven and ten years, respectively. During 2020, Logicenters will further develop the properties to meet the tenants’ needs.
After several years of cooperation, Menigo Foodservice AB and Dustin AB have chosen to renew their leases with Logicenters. Menigo has signed a seven-year lease with Logicenters and will remain as a tenant in the Bussen 5 property in Strängnäs – a modern logistics facility. The property is located between Södertälje and Eskilstuna, which is an excellent logistics location in close proximity to Stockholm and the Mälaren region. The modern building has an area of 27,500 m² and has been adapted to handle refrigerated, frozen and dry goods.
Dustin continues to lease the property at Metallvägen 36 in Rosersberg, which is also located in one of the best logistics locations in Sweden alongside the E4 motorway and close to Stockholm, the Mälaren region and Arlanda Airport. Dustin has signed a ten-year lease with Logicenters and it will also invest in automation during the coming lease period. The logistics facility which Dustin will continue to lease meets all the criteria for a modern logistics operation. The leased area amounts to 22,500 m².
“It is very pleasing that our tenants are so happy with us that they are choosing to enter into long-term contracts. The fact that Menigo and Dustin are extending their contracts for seven and ten years respectively is confirmation to us that our properties are attractive and can support their growth journeys. At Logicenters, it is always our aim to offer high quality and flexible properties in locations which are strategically suitable for logistics and we look forward to continued good cooperation with our tenants,” says Jonas Kennerhed, Asset Manager at Logicenters.
The Menigo contract expires on 1 January 2021 and adaptations and improvements to the property will be carried out during 2020. The adaptations to the Rosersberg property will begin immediately and will be completed in 2020.
Nordic region’s largest roof-top solar cell plant, both in terms of area and capacity Logicenters will now build on the logistics property leased by Speed Group in Viared, outside Borås. The new solar plant will encompass 60,000 m² and have a capacity of 5 MWp. The solar cells are estimated to be capable of producing 4 GWh of electricity a year, corresponding to the electricity consumption for 800 homes.
In 2018, Logicenters began work on expanding the already 38,000 m² property to a total of 83,000 m² on behalf of Speed Group, a logistics operator owned by Ratos. The logistics facility is one of the largest in the Nordic region and is strategically located along the Swedish national road 40, just six kilometres from Göteborg. Logicenters will now further develop the environmentally-rated facility by installing a solar cell plant on the roof of the property.
“We are very proud to be working with Speed Group to take a major step forward in the transition to green energy. Building for a sustainable future is at the heart of our sustainability work and this project will enable us to prove that our buildings can actually be part of the solution, rather than part of the problem. And despite the fact that the tax on solar energy currently penalises large solar plants, we cannot postpone major and important climate investments in the future,” says Matthias Kettelhoit, Head of Logicenters.
The roof-top solar cell plant will have an electrical capacity of 5 MWp and a full area of 60,000 m². This will be the Nordic region’s largest roof-top solar cell plant, both in terms of area and capacity. The plant is scheduled for completion in 2020 and is expected to produce 4 GWh of electricity per year, which could supply around 800 standard homes with electricity for a full year.
“Ratos is convinced that there is a strong link between sustainability and long-term value creation. And we are now putting our money where our mouth is by working on the construction of a solar plant of this size. As recently stated, we do still maintain that taxing self-generated electricity which is used in-house is not the right way to go, but we cannot let this stop us from making the right choice in the long term,” says Christian Johansson Gebauer, Area Manager for Construction & Services at Ratos.
It is calculated that the new solar plant will produce 33 percent more electricity than is currently consumed by the property. Speed Group will use some of the electricity in its daily operations, but the surplus will be available to other users through the electricity grid.
“We are very pleased to have a solar cell plant of this calibre installed on the roof. This is the right way to go, both from a climate perspective and a market perspective, as we are finding that more and more customers want to work in properties powered by green electricity. The fact that a considerable amount of daily operations will be powered by self-generated green electricity from solar cells on our own roof is gratifying both for Speed Group, our customers and not least for the environment,” says Mats Johnson, CEO of Speed Group.
NREP Logicenters, a leading Nordic real estate investor and developer, and QHeat, a next-generation energy company, have completed their joint pilot project to build a deep geothermal well in Espoo, Finland. The pilot aims to provide a near zero-emission energy solution that can produce up to 40 times more heat energy than traditional ground heat.
NREP Logicenters and QHeat’s pilot project on a deep geothermal well has been completed at NREP Logicenters’ logistics property in Koskelonkuja, Espoo. The pilot is Finland’s first functional geothermal heating plant that can heat as well as cool large property complexes in a nearly emission-free manner.
The deep geothermal well, located on NREP Logicenters’ property, is approximately one kilometer deeper than a regular geothermal heat pump, which enables greater production of energy. The well, which was taken into use in January, is 1,300 meters deep and is estimated to produce more than 1,000 MWh of heat energy per year, which equals the heat consumption of approximately three apartment buildings. The well covers 60–80 percent of the 16,000 m2 logistic property’s heating. In addition, QHeat’s technology enables the property’s cooling during the summer.
“The heating of buildings represents approximately one fourth of the total energy consumption in Finland, and most of this energy is produced with fossil fuels. The only way we can reach our goal of using only renewable energy in our properties is to pilot and scale new solutions such as this one,” says Jani Nokkanen, CIO and partner at NREP.
The drilling of the deep geothermal well began at the end of July 2019, and the well’s heat production began in January 2020. The pilot is part of the Smart Otaniemi innovation ecosystem and received nearly half of its funding from Business Finland.
“We are excited to put into operation Finland’s first functional geothermal heating plant. We are grateful to Business Finland and NREP for funding this pilot. We believe that this technology has significant export potential as a solution to decrease emissions from heating and cooling,” says Miska Eriksson, QHeat’s CEO.
The energy production of NREP Logicenters’ deep geothermal well will be tested during spring and the company aims to utilize the technology also in its other properties.
“QHeat’s technology has great potential, as it enables emission-free geothermal heat also in densely built urban areas. We have already identified large projects in the Helsinki Metropolitan Area in which we would like to scale the technology,” Nokkanen continues.
Logicenters is now to expand its presence in Jönköping by developing a new logistics facility in Torsvik. The property is estimated to be 32,400 m2 in size. The development is scheduled to begin in the first quarter of 2020 and is expected to be completed in early 2021.
Having developed a number of logistics properties in Jönköping, Logicenters is continuing to strengthen its presence in the region. This 32,400 m2 logistics facility will be located on Möbelvägen in Torsvik. The property is to be built on speculation and must therefore be developed to suit both a single tenant as well as several different ones. The development is scheduled to begin in March and is expected to be completed in early 2021. As with Logicenters’ other new developments, the property will have a clear environmental profile and will be prepared for the installation of solar cells on the roof.
“This development will further strengthen our business offering and will enable us to meet customers who value rapid access to logistics properties, something that we notice is in increasing demand. We see tremendous potential in the area and are therefore very pleased to strengthen our presence in Torsvik. The region is one of the country’s most important logistics hubs,” says Matthias Kettelhoit, Head of Logicenters.
Logicenters has been active in the Jönköping region for many years. The company’s tenants in the area include Babyshop, Bring and Kitron. The new development will take place on an attractive site in the area, near IKEA and Elgiganten, and directly adjacent to the property where Kitron is the tenant.
Logicenters and Qvana Invest are jointly developing another logistics facility at the Stigamo Logistics Park, Jönköping. The tenant will be a company within AD Sverige which is already leasing Logicenters’ neighbouring property and is now seeking to expand to another facility. Moving in to the 25,000 m² facility is scheduled for the end of 2020.
Logicenters is continuing to consolidate its presence at important logistics hubs. The company is now cooperating with Qvana Invest to once again develop a logistics property at the Stigamo Logistics Park, south of Jönköping. The new development will be a detached building measuring approximately 25,000 m². It will be constructed in connection with an already existing facility currently leased by AD Sweden at the Stigamo Logistics Park. A subsidiary of AD Sverige will become the tenant at the new property, thereby expanding its presence in the area, as Logicenters is doing.
“We are delighted with our continued successful collaboration with Qvana Invest and AD Sverige. Stigamo Logistics Park has an ideal strategic location for logistics and the selected site is among the best in the area with clear visibility from the passing E4 motorway. The building has been designed in accordance with our standard model for modern logistics facilities and we are also planning to be able to install solar panels on the roof in line with our focus on sustainability,” says Matthias Kettelhoit, Head of Logicenters.
The new facility is strategically located on Norra Stigamovägen and is being built as per Logicenters’ standard specification adapted for modern logistics operations. The property is being prepared in line with Logicenters’ strong focus on sustainability, including the installation of solar cells on the roof.
“We are delighted that Qvana Invest and Logicenters are developing a new property in Stigamo because our previous good cooperation left us wanting more. Like us, Logicenters prioritises modern logistics properties with sustainable options such as solar cell plants. We hope that AD Sverige will thrive at its new property,” says Jonas Andersson of Qvana Invest.
“It is both pleasing and important that we will have access to additional storage space in Jönköping. Furthermore, the fact that this facility is being constructed in direct connection with our current central warehouse, and in an area where we are thriving, is something we are very positive about. Our previous experience of working with Logicenters and Qvana Invest has been outstanding and we look forward to expanding and moving into our new modern warehouse,” says Adam Källberg of AD Sverige AB.