Catena is Sweden's largest real estate company focused on logistics properties, and the company's real estate portfolio is concentrated around Greater Stockholm, Malmö, Göteborg, Helsingborg and Jönköping. The company has a long history in various forms, but the current Catena took shape in 2013 when most of Brinova's property portfolio was acquired through a reverse merger. In 2015, Catena divested a large development property in Solna to Fabege and acquired the property company Tribona, which was consolidated in early 2016.
Catena is the Swedish market leader within e-commerce and FMCG (fast-moving consumer goods) properties, focused on structural change and the shift towards faster delivery of products and food. In line with the increase in freight flows, increased trade and e-commerce, the need for modern logistics sites is increasing. The group has a strong property portfolio and invests around SEK 600m p.a. in property development and new construction.
Around 44% of Catena’s rental value comes from Greater Stockholm. Rental rates for the logistics sector in that region, inflation-adjusted, have been stable since 1990. In addition, most of Catena’s logistics facilities are in locations where land is abundant, which implies that potential rental growth may be difficult to achieve. This results in a smaller upside in terms of unrealised value changes compared with other real estate segments, but more solid earnings during recessions. Overall, Catena’s real estate portfolio is well diversified, and the main risk is macro. Moreover, Catena has a higher focus on property development compared with peers, thus increasing risk.
