Tritax EuroBox is pleased to announce that it has acquired a prime, modern logistics facility near Frankfurt in Germany for a total consideration of €50.6 million, reflecting a net initial yield of 4.75% on the corporate acquisition.
This brand new, well specified, purpose-built facility has a gross internal area of c.43,000 sqm, an eaves height of 12 metres, a significant yard area and parking facilities. It is situated in the prime logistics location at Hammersbach, near Frankfurt, which benefits from exceptional logistics links and has high occupier demand, a low vacancy rate and limited availability both of logistics buildings and land for development.
The new facility, developed by Dietz AG (“Dietz”), the Company’s asset manager in Germany, is let to ID Logistics, an international contract logistics group and listed on Euronext Paris with approximately 300 sites worldwide across 17 countries. Dietz has retained a small interest in the acquired asset.
This facility is entirely let to ID Logistics on a new 10-year lease term, with breaks after years 5 and 6. The lease is subject to annual upward only indexation of 100% of German CPI, after year 3 of the lease. ID Logistics will be servicing a financially robust world leading retailer from this facility.
Nick Preston, Fund Manager of Tritax EuroBox, commented: “We are delighted with our ninth investment for Tritax EuroBox plc, bringing our total amount invested to over €600 million. This off-market acquisition of a brand new, well specified, purpose-built big box logistics asset is in a prime logistics location in Germany that benefits from excellent transport and infrastructure connectivity and strong supply/demand fundamentals. We expect this property to generate an attractive income return with good income growth potential. This is our third investment through our relationship with Dietz, which demonstrates the high-quality of their development assets in prime locations.”