Tritax EuroBox PLC Acquisition (9664H)
November 21 2018 - 1:00AM
UK Regulatory
TIDMEBOX TIDMBOXE
RNS Number : 9664H
Tritax EuroBox PLC
21 November 2018
21 November 2018
Tritax EuroBox plc
(the "Company")
FORWARD FUNDED INVESTMENT IN A NEW PRE-LET PRIMARY DISTRIBUTION
CENTRE NEAR HANNOVER IN GERMANY FOR EUR27.5 MILLION
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 the Company has
exchanged contracts to provide forward funding for the development
of a new cold store and primary distribution facility at Wunstorf,
near Hannover in Germany. The contract is conditional on receiving
the building permit which is expected in the near-term.
The property is pre-let to HAVI Logistics GmbH ("HAVI"), a
global leader in food service logistics focused on innovating,
optimising and managing the supply chains of leading brands. HAVI
is part of HAVI Global Logistics GmbH, a group with annual turnover
of c.EUR4.5 billion. The development represents an investment of
EUR27.5 million, reflecting a net initial yield of 4.9% on the
acquisition.
The site at Wunstorf is 20km from the centre of Hannover, a
well-established logistics location in northern Germany, which
benefits from excellent infrastructure and connectivity to the
extensive road and motorway and rail networks.
The new facility will be HAVI's primary distribution centre
focused on the convenience food sector. The facility will be
purpose-built to a high specification with a gross internal area of
c.16,393 sqm, comprising three ambient and temperature-controlled
logistics facilities and ancillary office space. The low site cover
of approximately 25% provides for potential extension opportunities
on the site that would deliver income growth and value
enhancements.
Upon practical completion of the construction, targeted for
January 2020, the facility will be fully let to HAVI on a new
15-year lease, with two renewal options of five years. The rent is
subject to annual indexation. From completion of the land purchase
and during the construction phase, the Company will receive an
income return equivalent to the agreed rent from the developer.
The development is being undertaken by Verdion, a highly
experienced investor, developer and asset manager specialising in
European industrial and logistics real estate.
Nick Preston, Fund Manager of Tritax Eurobox, commented:
"We are delighted with our seventh investment for Tritax EuroBox
plc. This forward funded development asset, pre-let to a strong
tenant covenant in HAVI, will generate an attractive income return
for the next sixteen years. Situated in an established prime
logistics area near Hannover in Germany, this strategically located
asset benefits from excellent transport connectivity.
With strong and growing occupier demand and limited availability
of well-located logistics assets and land for development in the
region, this acquisition provides good income growth potential in
addition to attractive value and income enhancing extension
opportunities."
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 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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