TIDMEBOX TIDMBOXE
RNS Number : 2159U
Tritax EuroBox PLC
01 April 2021
1 April 2021
ACQUISITION OF TWO HIGHLY SUSTAINABLE LOGISTICS ASSETS IN PRIME
LOCATIONS IN GERMANY FOR EUR290.9 MILLION
Swiftly deploying recently raised funds to capture significant
opportunities in the core continental European logistics market
Tritax EuroBox plc ("Tritax EuroBox" or the "Company") announces
that it has agreed the purchase of two assets in Germany for a
total consideration of EUR290.9 million excluding acquisition
costs. The two transactions are structured as share deals and the
combined rental income amounts to EUR11.38 million per annum,
reflecting a combined net initial yield of 3.9%.
Nuremberg region, Bavaria - Acquisition of a Foundation asset of
70,000 sqm leased to a leading German sportswear manufacturer.
On 31 March 2021, the Company agreed to acquire the freehold
interest in a highly sustainable recently built logistics property
in the Nuremberg region, Bavaria. Completion will occur on 1 April
2021.
This highly specified logistics building is the European
distribution headquarters of a leading German sportswear
manufacturer strategically located in central southern Germany
close to Nuremberg on the A3 motorway towards Frankfurt and close
to the tenant's headquarters.
The property has been developed to the highest sustainability
standards. It is CO(2) neutral, built to LEED Gold standard,
benefits from certified green energy procurement, has a roof
mounted photovoltaic system generating up to 1.5 megawatts of
electricity and also is constructed with a 22,500 sqm green
roof.
The property is leased for a further 14 years benefitting from
indexation to 100% of the German CPI index following a four year
indexation holiday from the start of the lease. The 20 hectare site
comes with extension potential for an additional 42,000 sqm of
floorspace.
Lich, Hesse - Acquisition of a 94,800 sqm Growth Covenant asset
leased for 15 years to Wayfair GmbH in a prime location to the
north of Frankfurt
The Company agreed on 31 March 2021 to acquire this
purpose-built logistics building. Completion is expected on 1 May
2021, subject to a number of conditions, including practical
completion of the building.
The building is located some 60 km north of Frankfurt, close to
the town of Giessen and to the strategic A5/A45 motorway
intersection and leased for 15 years to the rapidly growing global
online furniture group Wayfair. Wayfair Inc, the US parent company
with a market capitalisation of over $35 billion, generated total
net revenue over the full year 2020 of $14.1 billion, generating a
gross profit of $4.1 billion. The lease is annually indexed to 100%
of German CPI, following a three year indexation holiday at the
commencement of the lease.
The property has been built to high sustainability standards,
certified to DGNB Gold standard, and it benefits from a range of
operational energy reduction measures. The roof has the capacity to
support the installation of solar PV panels. The high specification
of the construction, including 16m eaves height, 223 loading doors,
192 HGV spaces and 415 car spaces also allows for the building to
be subdivided into nine units.
Both properties have been developed by Dietz AG, a leading
European logistics developer, and one of the Company's retained
development partners. Dietz AG will remain as a minority
shareholder in both assets.
The German logistics real estate market is currently
characterised by strong occupier demand and a lack of supply of
high-quality space with vacancy rates at c 2.6% of total stock.
According to JLL, the prime logistics property yield in Germany is
3.4%.
These acquisitions align with the Company's investment strategy,
with a particular focus on achieving its near and long-term ESG
targets in owning sustainable buildings, reducing energy and carbon
emissions, enhancing biodiversity and creating quality workspaces
for occupiers.
Nick Preston, Fund Manager of Tritax EuroBox, commented:
" Following the successful raise of EUR230 million of new equity
in March 2021, we are delighted to acquire swiftly these two assets
in core logistics locations in Germany, deploying a large part of
the equity proceeds recently raised and the proceeds of the
profitable sale of an asset in Poland. Both buildings are highly
sustainable, modern, top specification logistics facilities. They
benefit from excellent transport and infrastructure connectivity
and are let on long index linked leases to high quality, market
leading, global occupiers.
The growth of our investment portfolio remains underpinned by
the stability and resilience of the rental income, and our ability
to deliver market-leading returns to shareholders continue to be
supported by our expertise, established relationships with
experienced developers such as Dietz AG, and our reputation for
effective and timely execution of agreed deals. We will continue to
exercise discipline in deploying funds into the acquisition of
assets which align with our long term strategic goals and meet or
exceed our stringent ESG criteria."
For further information please contact:
Tritax Group
+44 (0) 20 8051 5070
Nick Preston
Mehdi Bourassi
Jo Blackshaw (Investor Relations)
Maitland/AMO (Media inquiries)
James Benjamin
+44 (0) 7747 113 930
tritax-maitland@maitland.co.uk
The Company's LEI is: 213800HK59N7H979QU33.
Notes:
Tritax EuroBox plc invests in and manages a 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 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.
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.
Further information on Tritax EuroBox plc is available at
www.tritaxeurobox.co.uk
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