Logistea has signed LOI for lease agreement with international battery cell producer for 380,000 sqm and signed land reservation agreement for one million square meters of land area in Svenljunga Municipality

Logistea AB (publ) has, together with Hansson Holding AB, entered into a conditional letter of intent for a lease agreement with an international battery cell producer of 380,000 sqm of new production and signed an exclusive land reservation agreement for one million sqm of land area with Svenljunga Municipality in Sweden for the current establishment. The letter of intent with the tenant is initially conditional on Logistea receiving a land allocation agreement with Svenljunga Municipality, which is expected to take place during the beginning of 2022. In addition, the letter of intent regarding the lease agreement is conditional on a finalized detailed plan.

Logistea, together with JV-partner Hansson Holding AB (together the "JV-company"), has entered into a letter of intent to sign a lease agreement with an international battery cell producer that designs and produces lithium battery cells. The JV-company is 95 percent owned by Logistea AB and 5 percent by Hansson Holding AB.

In addition, the JV-company has signed an exclusive land reservation agreement covering a land area of approximately one million square meters strategically located in Lockryd in Svenljunga Municipality, which is part of Business Region Borås. The total lettable area for the planned battery cell plant is estimated to be approximately 380,000 square meters. The land area also enables the establishment of subcontractors and other buildings. Initially, the cooperation is conditional on Logistea receiving land allocation agreements from Svenljunga Municipality and the detailed plan becoming final.

"Logistea has a clear goal and strategy to grow strongly in modern properties for logistics and light industry. The LOI that we have today signed with the international battery cell producer creates the basis for becoming one of the major industrial projects in recent years in Sweden. We look forward to developing the area together with the tenant, Business Region Borås and Svenljunga Municipality. The collaboration confirms the region's attractiveness for forward-looking and international establishments" says Niklas Zuckerman, CEO, Logistea AB.

"It is with great pleasure and power that we have now reached a commercial agreement and thus can intensify cooperation with Svenljunga Municipality and the international battery cell producer in order to achieve an establishment for the benefit of all parties, not least regional players and the local community" says Stefan Hansson, CEO, Hansson Holding AB.

"We look forward to taking the next step to develop this establishment to become the success story for all parties involved that it can become. We have a fantastic collaboration here in the Borås region that we can now develop further during the work on this large establishment," says Magnus Nilsson, Municipal Director, Svenljunga Municipality.

Logistea will provide more information about the project in line with its development.