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.
The groundbreaking ceremony for the new logistics facility in Bålsta has now taken place. The property being built and owned in the long term by Logicenters will become environmentally certified. With an area of 104,000 m2, it will be one of Europe’s largest and most modern logistics facilities. Logicenters and Axfood’s purchasing and logistics company Dagab previously signed a contract for the development and leasing of a property scheduled to come into operation in 2023.
In July 2019, Logicenters and Dagab, Axfood’s purchasing and logistics company, signed an agreement to make Dagab a long-term tenant at the logistics property in Bålsta. Yesterday, on the 25th of November, construction began on the facility which will be one of Europe’s largest. The property will be environmentally certified in accordance with BREEAM-SE, including modern specifications such as temperature zones and a high degree of automation.
“I am delighted that the day has arrived for construction to commence on what will become one of Europe’s largest and most modern logistics facilities. This means that we are now expanding our property portfolio with the addition of a large, environmentally certified property in an excellent location. Receiving this confidence from a major tenant is something Logicenters values strongly and we are convinced that it will flourish here. We also want to take the opportunity to thank Axfood and Dagab for a very rewarding collaboration,” says Matthias Kettelhoit, Head of Logicenters.
The property is being built at Håbo Lundby 2:8, just outside Bålsta, northwest of Stockholm. The site is strategically important for logistics, with its proximity to both the E18 motorway and Stockholm. The facility is scheduled to become operational in 2023.
In addition to representatives from Logicenters, Dagab and Axfood, also present at the ceremony were the mayor of Håbo municipality, Liselotte Grahn Elg, Agneta Hägglund, opposition councillor, and Tobias Arvidsson, head of local government at Håbo municipality.
“We are very happy that ground has now been broken for our highly automated logistics facility. The new logistics centre will enable us to meet tomorrow’s challenges and consumer needs, creating a flexible, efficient and sustainable logistics chain for both retail and e-commerce customers. We are looking forward to moving in,” says Nicholas Pettersson, CEO Dagab Purchasing & Logistics.
Motek AS has become a new tenant in Logicenters’ property at Fjellbovegen 9 in the attractive Berger area of Oslo. Moving in is scheduled to begin in early 2020 and the company will lease an area of 12,571 m2.
Logicenters has signed a lease agreement with Motek AS. The contract covers an area of approximately 12,571 m2, which means that the property is now fully let. The logistics facility is located on Fjellbovegen 9 in Berger, outside Oslo. The previous tenant was Bertel O Steen which had the opportunity to move out before its contract expires in April 2020. Motek AS will move in during the first part of 2020 and will lease all parts of the property.
“It feels great to announce that we have signed an agreement with Motek AS, which will be the new tenant at Fjellbovegen 9. Following planned tenant improvements on the property at the end of 2019, we look forward to Motek AS moving in at the beginning of 2020. Berger is an area attractive to tenants and Logicenters has focused on finding a tenant able to lease the entire property, something we have now succeeded in doing,” says Jørgen Bråten Nordby, Commercial Manager, Logicenters Norway.
The property is ideally situated at Fjellbovegen 9. Of a very high standard, it has a spacious loading yard including 18 loading docks. Berger is considered to be the most attractive logistics location along Oslo’s northern logistics corridor. Logicenters’ property is located in close proximity to the E6 motorway, which extends from Oslo to Gardemoen airport and further into Norway. Its proximity to the Alnabru terminal, which is Oslo’s main terminal for cargo handling and transport, increases the attractiveness of the area even more.
For the past two years, Logicenters has invested heavily in its project development department, more than doubling the number of employees. Under the leadership of the company’s Head of Development, Eva Sterner, the department will expand further and scale up initiatives in both area efficiency and environmental work. However, Eva Sterner would also like to attract more women to a male-dominated industry.
With a PhD under her belt and a background as Technical Director Due Diligence at WSP and Managing Director at Watts, Eva began working at Logicenters seven years ago. According to Eva, it is the growth journey, a steady flow of interesting projects, and above all, her colleagues who have been significant reasons behind her becoming a long-term presence at Logicenters. In recent years, both Logicenters and her own department have grown significantly. According to her, this is both because the organisation is flexible and has great ambitions, but also because Logicenters is comprised of people who are driven to do things in new and innovative ways.
Eva Sterner is currently head of Logicenters’ project development department, which has expanded from two to eight people since 2017, with further recruitments planned. Central to this future development is the continued ability to attract talent, with Eva particularly wishing to encourage more women and girls to apply to the logistics industry. An industry which has until now been male dominated.
“I am proud to work for a company with such great ambitions and which allows all its employees to grow. As I personally had no female role models in the logistics industry, I would like to be a role model for girls wanting to work at smart logistics properties. For this to be possible, female employees must be both encouraged and promoted. I believe that Logicenters does this every day, which is something I see as both modern and important,” says Eva Sterner, Head of Development at Logicenters.
The project development department has a great responsibility regarding procurement, contact with tenants, property development and the contractual parts of the works contract. The department is constantly striving to find newer, smarter ways to develop modern properties, where 30-metre high-bay warehouses and energy audits exemplify innovative initiatives from Logicenters. With regard to energy efficiency, Eva plays an important role in Logicenters’ work to reduce its carbon footprint. Something which she finds customers are appreciating more and more.
“I am finding that there is increasing focus on the environment within the industry, something which I am very pleased about. We often coach our customers on issues regarding reduced energy consumption, not least by conducting energy audits, and we are finding that we are being listened to. It is my ambition to continue to drive this development forwards in order that we can offer even smarter and more energy-efficient logistics properties with as low a carbon footprint as possible. Being able to lead this development in an organisation where both colleagues and management support my ambitions is something of which I am very proud and something that makes Logicenters an attractive workplace and company,” concludes Eva Sterner.
Logicenters has now received the European Real Estate Brand Book 2019, containing the results of the competition Real Estate Brand Award that was decided earlier this year. The competition ranks more than 1,600 brands within the European real estate industry. In the category “Real Estate Developers Logistics”, the award for the strongest brand among developers of logistics properties goes to Logicenters in first place. Logicenters is also placed on the top ten list for all logistics developers in Europe.
The Real Estate Brand Awards was arranged for the tenth 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 “Real Estate Developers Logistics”, Logicenters is ranked as the strongest brand among developers of logistics properties and has now received the European Real Estate Brand Book 2019 with the result. Logicenters is also placed on the top ten list for all logistics developers in Europe.
The European Real Estate Institute is hosting the Real Estate Brand Awards. Factors that, according to the institute, lie behind Logicenters’ high ranking include the special character of the company, the quality of its implementation and its precision with regard to adherence to deadlines. The value of all of the factors that companies are ranked by is then totalled to a weighted index, the Brand Value. Logicenters achieved a Brand Value score of as high as 88.42, with 100 being the highest value, ahead of the no. 2 company, which scored 86.73.
“We are very proud to have won this award, which is an acknowledgement that all our hard and careful work has been noticed in international circles. It does not, however, mean that we can rest on our laurels, on the contrary, we must now increase our efforts to offer our clients even smarter and more user-friendly logistics solutions. 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 91,000 industry experts are asked about the more than 1,600 participating real estate brands.
For additional information regarding Real Estate Brand Awards:
Working in collaboration with ÅF-Infrastructure, Logicenters conducted an energy audit of 13 of Logicenters’ properties. The energy audit shows that the logistics facilities can save up to 30 percent of their total energy consumption. Moreover,
most of the actions appear to involve relatively small investments.
Last winter, Logicenters commissioned ÅF-Infrastructure to initiate a project to help Logicenters’ tenants improve energy efficiency and to reduce their environmental impact. In total, 13 of Logicenters’ logistics facilities have undergone an energy review with the results showing great potential for saving. By streamlining energy consumption in the properties, it is possible to reduce energy costs by one third. In total, this means savings of SEK 500,000 annually – for each property.
“Our energy review shows that a great deal of energy is being wasted. The result indicates that there is greater potential for savings than we believed, especially considering that the properties which were inspected are modern facilities. The cooperation with ÅF is an important step for Logicenters in our efforts to improve the energy efficiency of our properties and to reduce our carbon footprint,” says Matthias Kettelhoit, Head of Logicenters.
Energy-efficient actions in the 13 facilities can reduce CO2 emissions by a total of more than 1 000 tonnes per year. For the properties which underwent the energy review, the proposed measures to save 30 percent would mean a repayment term of 7.5 years. When introducing minor measures, which essentially do not involve any monetary investments, the savings potential is still 6 percent.
“Energy efficiency may seem expensive, but we want to use this project to demonstrate that it does not have to cost a fortune to lower costs. It may mean training the staff in the efficient handling of machines or introducing timed lighting on the premises. Certain investments have a longer repayment period than others, but in the long run, both the bank account and the environment benefit from introducing smart, energy-efficient measures,” says Björn Rinde, energy consultant at ÅF-Infrastructure.
The work is now continuing to carry out energy audits at more facilities in Logicenters’ property portfolio. In total, it is estimated that the properties could reduce their CO2 emissions by as much as 6 400 tonnes a year through the introduction of more energy-efficient measures.
List of tips for how to improve energy efficiency at logistics properties:
Logicenters is expanding at a greater rate than ever before. With a total of nine logistics facilities under development, the company is strengthening its position in the Nordic market significantly. The total area currently being developed by Logicenters amounts to a total of 227,000 m2, with several LOIs also having been signed.
Logicenters is a leading developer and owner of modern logistics facilities in the Nordic region. In August 2018, the total holding of logistics space amounted to 1.6 million m2. This figure continues to rise and Logicenters currently has nine ongoing development projects totalling 227,000 m2. Of these, six are in Sweden, two in Denmark and one in Finland. In addition, LOIs have been signed for an additional 210,000 m2, including a 110,000 m2 facility for Axfood in Bålsta, Sweden.
“I am incredibly proud of Logicenters’ success. It is thanks to a strong team and a unique operational flexibility that we have been able to grow at the pace we have. This current expansion is enabling us to increase our presence in important logistics hubs and a natural consequence of this is that we need further reinforcement of the team. We are now looking for project developers for several of our development projects,”says Matthias Kettelhoit, Commercial Head at Logicenters.
A sustainable focus
Sustainability is one facet of today’s Logicenters development projects. Energy-efficient solutions and solar panels on roofs are examples of recurring specifications in the construction of new properties. According to Logicenters’ Head of Development, Eva Sterner, the sustainability strategy is an important success factor.
“Reducing our carbon footprint to the greatest possible extent is of the utmost priority to us. Our sustainability strategy integrated in the logistics portfolio enables us to help our customers reach their climate goals, something that we know is appreciated. The great interest in our facilities is a confirmation that we maintain a high standard of development and we will continue to work to meet the functional and sustainable logistics needs of tomorrow,” says Eva Sterner, Head of Development at Logicenters.
2019 will be a year of expansion for Logicenters. Three key positions are now being added in order to support the growth of the organisation. Simon Campbell, Richard Drougge and Victoria Ödmark will be taking on these new positions at Logicenters.
Logicenters is growing in terms of both real estate holdings as well as organisationally. In the coming years, the company will continue to strengthen its position as a leading developer and owner of modern logistics facilities in the Nordic region. In order to support growth and meet the needs of tomorrow, Logicenters is strengthening its workforce with the addition of three new recruits within property development, finance and business development.
“We have recruited three people to Logicenters, all of whom will have a significant role to play. They all possess skills that we need, and I am delighted that they have chosen to join us. By offering new perspectives and experiences, our latest recruits will help us to continue growing and to maintain our competitiveness in the market,” says Matthias Kettelhoit, Commercial Head at Logicenters.
Simon Campbell is joining the Project Development team as Project Manager. In his role, he will manage new construction projects, with key client focus. His recruitment became necessary due to Logicenters’ many ongoing and planned development projects. Campbell has 12 years of experience from managing production services within Skanska, most recently as project manager.
Richard Drougge has been recruited as Fund Controller with a focus on financing issues, investor reporting and transactions. This recruitment is another step for Logicenters to support growth and meet investors’ reporting requirements. Drougge has many years of experience in the industry, with his most recent role being project leader for property transactions at PwC.
Victoria Ödmark has been appointed as Business and Asset Manager. She will primarily focus on the development of Logicenters’ business and will be responsible for managing key accounts. Ödmark has worked in NREP for the past two years, most recently with responsibility for the expansion of Pelican Self Storage. Prior to this, she worked for five years as a transaction consultant at the consulting firms Newsec and Savills.