Aberdeen Standard Eur Lgstc Inc PLC Acquisition and Tenant Update
RNS Number : 5743U
Aberdeen Standard Eur Lgstc Inc PLC
07 April 2021
7 April 2021
Aberdeen Standard European Logistics Income PLC
Acquisition and Tenant Update
ASLI Acquires EUR28.0 million Logistics Hub in Lodz, Poland
Aberdeen Standard European Logistics Income PLC (the "Company"
or "ASLI") announces the signing of the purchase agreement for the
previously announced acquisition of a modern logistics and
distribution property in Lodz, Poland. ASLI will acquire the asset
for EUR28.0 million, representing a net initial yield of 5.6%, from
logistics and industrial developer Panattoni.
The 31,500 square metre Panattoni Lodz City VIII Logistics
Centre consists of 27,888 sqm of warehouse space and 3,612 sqm of
office space. The asset is 100% leased to six tenants generating a
Net Operating Income of EUR1.59 million and with a Weighted Average
Lease Term of 6.7 years.
Tenants at the asset include manufacturers Bilplast, Tabiplast,
Mecalit Polska and Alfa Laval, logistics operator EGT Express
Polska, retailer KAN, which owns the Polish fashion brand Tatuum,
and Compal, one of the world's largest computer component
manufacturers, which signed a new 7-year lease in February 2021 and
supplies the DELL factory located less than 1 kilometre from the
Located at the centre of Poland's thriving industrial and
manufacturing sector, the property is situated adjacent to the
Bosch-Siemens Campus, which is a strategically important production
and distribution hub for the international manufacturer. The site
benefits from access to the Intermodal Container Terminal, created
to support the Bosch-Siemens campus, which offers direct rail
connections with China.
Lodz is Poland's third largest city by population and is home to
several universities. The Panattoni Park site is highly accessible
by local public transport and the A1 and A2 motorways which provide
North South, East West access across Europe, whilst Lodz
international airport is just 15 minutes away.
Evert Castelein, Fund Manager for ASLI, commented: "The
warehouse in Lodz is a very high-quality income producing asset
located at the heart of one of the CEE region's most strategically
important manufacturing and logistics hubs. The asset's proximity
to the nearby Bosch Siemens Campus provides strong long-term
attraction to occupiers in this supply chain, while the new
international railway station and its direct links to China and
other European markets provide unrivalled international
connections. The Lodz region is in high demand from occupiers and
the vacancy rate is one of the lowest in Poland.
"We believe strongly in Poland's growth prospects and are
pleased to be making our third acquisition in the country, and to
have secured this asset at an attractive yield in a competitive
logistics market. We are actively pursuing deals in the wider
region and whilst the demand for logistics property has led to
further yield compression, particularly in core markets, the
overall return prospects for investors in this sector are expected
to remain strong as operators continue to seek additional capacity
and the reshoring of operations from overseas gathers pace."
Cushman & Wakefield advised Aberdeen Standard European
Logistics Income PLC.
On 24 February 2021, the Company announced that it had been made
aware that Office Dépôt France, the sole tenant occupying its
Meung-sur-Loire asset in France, had sought court protection and
the appointment of an administrator whilst new owners were sought
for the business. The property serves as the tenant's key national
distribution hub, reflecting its strategic location in one of
France's fastest-growing logistics regions.
The warehouse is ideally located for national distribution just
south of Orleans and close to main motorways towards Bordeaux/
Northern Spain and towards Marseille/ Lyon/ Toulouse. This location
has grown in importance due to the lack of greenfield locations in
and around Paris.
The Q4 2020 rent was paid in full and since the notice and
appointment of an administrator, the rent due for February and
March 2021 has been paid. In total, one month's rent plus a small
element of deferred rent, amounting in aggregate to EUR258k,
remains outstanding. Since the closing date for expressions of
interest has now passed, the Company expects further dialogue with
the administrator in the coming weeks as the ownership structure is
resolved. The Company also benefits from a three month rental
security deposit held at bank.
For further information please contact:
Aberdeen Asset Management PLC +44 (0) 20 7463 6000
Investec Bank plc +44 (0) 20 7597 4000
FTI Consulting +44 (0) 20 3727 1000
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(END) Dow Jones Newswires
April 07, 2021 02:00 ET (06:00 GMT)