Tritax EuroBox PLC Acquisition (6752F)
October 30 2018 - 2:00AM
UK Regulatory
TIDMEBOX TIDMBOXE
RNS Number : 6752F
Tritax EuroBox PLC
30 October 2018
30 October 2018
Tritax EuroBox plc
(the "Company")
ACQUISITION OF LOGISTICS ASSET NEAR HANNOVER IN GERMANY
FOR EUR81.6 MILLION LET TO ACTION
The Board of Tritax EuroBox plc (tickers: EBOX (Sterling), BOXE
(Euro)), which invests in Continental European logistics real
estate assets, is pleased to announce that it has acquired a prime,
modern logistics warehouse at Peine, near Hannover, Germany, a key
logistics location. The property is let to Action Logistics Germany
GmbH ("Action"), a subsidiary of Action BV, the fastest growing
non-food discount retailer in Europe, headquartered in the
Netherlands and operating across more than 1,253 stores in seven
countries. The total consideration payable by the Company is
EUR81.6 million for the corporate acquisition (excluding
purchaser's costs), reflecting a net initial yield of 4.8%.
This brand new, well specified, purpose-built asset is in an
established logistics location with excellent road, motorway and
railway connectivity. Located close to Hannover and Brunswick, on
the A2 motorway, which crosses Germany linking Berlin to the
Rhine/Ruhr region, the area benefits from excellent logistics links
and continues to see high occupier demand, a low vacancy rate and
limited availability both of logistics buildings and land for
development.
Practical completion of the construction is targeted for
November 2018. The lease to Action is for a term of 11-years with
three further five year renewal options. The majority of the rent
is subject to annual upward only indexation.
The property has a gross internal area of 92,454 sqm, an eaves
height of 10.5 metres and benefits from cross-docking with
significant yard area and parking. The site cover is approximately
48%.
This acquisition is the first for the Company arising from its
relationship with Dietz AG, ("Dietz") where the Company uses Dietz
as asset manager in Germany and also has access to the Dietz
development pipeline. Dietz has retained a small interest in the
acquired asset.
Knight Frank acted for the Company in this transaction.
Nick Preston, Fund Manager of Tritax EuroBox, commented:
"This is our fifth investment for Tritax EuroBox plc since IPO
in July 2018, bringing the total amount invested to over EUR440m.
This off-market acquisition at an attractive yield of a brand new,
purpose-built asset, is in a prime logistics location in Germany
that benefits from excellent transport connectivity and strong
supply/demand fundamentals.
We are delighted with this acquisition, the first in our
relationship with Dietz, which demonstrates the high quality assets
in prime locations that Dietz develops. We look forward to growing
this relationship in the future."
FOR FURTHER INFORMATION, PLEASE CONTACT:
Tritax Group
Nick Preston +44 (0) 20 7290
James Dunlop 1616
Jefferies International Limited
Gary Gould +44 (0) 20 7029
Stuart Klein 8000
Kempen & Co N.V.
Dick Boer +31 (0) 20 348
Thomas ten Hoedt 8500
Newgate Communications (PR Adviser) +44 (0) 20 7680
James Benjamin 6550
Anna Geffert tritax@newgatecomms.com
NOTES:
Tritax EuroBox plc intends to acquire and manage a
well-diversified portfolio of well-located Continental European
logistics real estate assets that are expected to deliver an
attractive capital return and secure income to shareholders. These
assets will fulfil key roles in the logistics and distribution
supply-chain focused on the most established logistics markets and
on the major population centres across core Continental European
countries.
Occupier demand for Continental European logistics assets is in
the midst of a major long-term structural change principally driven
by the growth of e-commerce. This is evidenced by technological
advancements, increased automation and supply-chain optimisation,
set against a backdrop of resurgent economic growth across much of
Continental Europe.
The Company's Manager, Tritax Management LLP, has assembled a
full-service European logistics asset management capability
including specialist "on the ground" asset and property managers
with strong market standings in the Continental European logistics
sector. The appointed asset managers Logistics Capital Partners
("LCP") and Dietz AG ("Dietz") are logistics specialists and offer
the Company exposure to high quality asset management expertise and
access to their respective development pipelines, providing
acquisition opportunities across Continental Europe.
The Company is targeting, on a fully invested and geared basis,
an initial Ordinary Share dividend yield of 4.75% p.a.(1) , which
is expected to increase progressively through regular indexation
events inherent in underlying lease agreements, and a total return
on the Ordinary Shares of 9.0% p.a.(1) over the medium-term. The
Company intends to pay dividends on a quarterly basis with
shareholders able to receive dividends in Sterling or Euro. Further
information on Tritax EuroBox plc is available at
www.tritaxeurobox.co.uk
1. Euro denominated returns, by reference to IPO issue price.
These are targets only and not profit forecasts. There can be no
assurances that these targets will be met and they should not be
taken as indications of the Company's expected or actual future
results. Accordingly, potential investors should not place any
reliance on these targets in deciding whether or not to invest in
the Company and should decide for themselves whether the targets
are reasonable or achievable.
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END
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