South Bay expands in Sweden with the development of a new logistics facility in Västerås

South Bay continues its expansion in the Nordic logistics market with a development of a new logistics facility in Västerås, covering approximately 25,400 sqm. The property will be developed with high sustainability ambitions and will be certified according to BREEAM Excellent and achieve an EPC rating of A. The tenant will be a leading Swedish company within sustainable transport solutions, having signed a long-term lease for approximately 12,800 sqm. The remaining area of approximately 12,600 sqm is available for lease, with move-in from August 2026.

Västerås is one of Sweden’s leading industrial cities and a growing logistics hub. The city offers a strategic location along the E18 highway, close to Stockholm and the Mälardalen region, with a well-developed infrastructure and access to a strong labor market. The demand for modern logistics space is strong, with low vacancy rates in the contemporary stock, making this establishment particularly attractive.

“Västerås represents an ideal location for us to invest in, given its strategic location, strong logistics flows, and increasing demand for sustainable properties. We see great potential in developing a modern and energy-efficient facility that meets future requirements. Collaborating with an innovative tenant further strengthens our ambition to contribute to the green transition in the logistics sector,” says Felix Paljak, CIO and Partner at South Bay.

The property is located in the Hacksta industrial area, which has recently seen several new establishments, reinforcing its position as a logistics hub in Mälardalen. The building right of approximately 25,400 sqm will be utilized from the outset, driven by the strong demand for modern space in the area. In addition to the already leased premises, around 12,600 sqm, including office and staff areas, will be developed and made available for lease after summer 2026, offering customization options.

The Mayor of Västerås welcomes the development and sees it as an important part of the city’s growth.

“We are very pleased that South Bay has decided to establish its presence in Västerås. This investment not only strengthens the city’s position as a logistics hub but also creates new job opportunities. We look forward to following the project and welcome South Bay and its tenants as long-term partners in Västerås,” says Staffan Jansson, Mayor of Västerås.

South Bay continues to actively seek new investment and development opportunities in the Nordic logistics market, with a focus on sustainable and strategically located properties.

For further information, please contact:

Felix Paljak, CIO
+46 73-546 66 32
[email protected]