TIDMEBOX TIDMBOXE
RNS Number : 3380L
Tritax EuroBox PLC
10 September 2021
10 September 2021
Further growth in key German markets
FORWARD FUNDING ACQUISITION OF 23,346 SQM LOGISTICS PROPERTY IN
PRIME LOCATION IN THE RHINE-RUHR REGION OF GERMANY FOR EUR29.9
MILLION
Tritax EuroBox plc ("Tritax EuroBox" or the "Company") (ticker:
EBOX (Sterling) and BOXE (Euro)), which invests in high-quality,
large, sustainable, prime logistics real estate strategically
located across Continental Europe, announces that conditional
contracts have been entered into to acquire the land for the
development of a new high specification and sustainable logistics
asset in Oberhausen, a prime location in the Rhine-Ruhr region of
Germany. The Company will now enter into a forward funding
agreement to construct the building.
This is the Company's 8(th) German asset, continuing the
Company's growth in this key market. The property will comprise a
single building of 23,346 sqm of ground level logistics space with
additional mezzanine and office accommodation, capable of being
split into four separate, equally sized units. The development will
be undertaken by Verdion, which specialises in European industrial
and logistics real estate. The land purchase is conditional on
receiving the building permit and access rights which are both
expected in the near-term.
Oberhausen, located between Duisburg and Essen, is one of the
cities forming the Rhine-Ruhr area, the largest urban area in
Germany with a population of over 10 million. Oberhausen offers
easy access to national autobahns 3 and 42, with connections across
the region as well as direct routes across Germany and into the
Netherlands and Austria. Duisburg port, the largest inland port in
the world, is only 15 minutes down the Ruhr river.
This acquisition is structured as a forward funding development
opportunity, where the Company has agreed an aggregate fixed
purchase price of EUR29.9m comprising land purchase, construction
of the buildings and developer's profit. There is the potential for
an additional incentive payment to Verdion if certain leasing
conditions are met. From completion of the land purchase and during
the construction phase, the Company will receive from the developer
an income return equivalent to the agreed net initial yield.
The Company will also benefit from a 12-month rental guarantee
provided by Verdion of EUR1.313 million from completion of
construction, which is expected to be in Q4 2022. This rental
guarantee is in line with the current estimated market rental value
per annum assuming a rent of EUR56 per sqm.
The Rhine-Ruhr area currently has high levels of occupier demand
and very low levels of vacancy for prime logistics real estate, and
in combination with the high quality construction and prime
location the Company expects the asset to lease before the end of
the rental guarantee period. Verdion will assist the Company with
the letting based on pre-agreed leasing criteria with an incentive
mechanism.
The development will be undertaken to high environmental
standards, targeting a minimum BREEAM Very Good and DGNB Gold
certification, and the construction will include a range of energy
saving initiatives and staff wellbeing measures.
The acquisition price of EUR29.9 million reflects a net initial
yield of 4.3% based on the income from the rental guarantee.
Alina Iorgulescu, Assistant Fund Manager of Tritax EuroBox,
commented:
"We are delighted to continue to develop our relationship with
Verdion, this being the third forward funded development we have
worked on with them. We remain committed to building up a
significant presence in prime areas of the German market which are
characterised by strong tenant demand coupled with low vacancy
levels and very limited land supply, leading to growing rents.
This development, a brown field regeneration project,
demonstrates the Company's ESG policy of replacing redundant
properties with modern, sustainable, energy efficient buildings
with significantly improved environmental credentials. The
completed building, situated in one of the best logistics locations
in Europe, will add to our growing portfolio of similar assets
where we continue to create value for shareholders."
Notes
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 well-diversified and
sustainable 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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END
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