Tritax EuroBox is pleased to announce that it has acquired a regional fulfilment centre in Passo Corese, Rome, let to a financially robust world leading online retailer. The total consideration is €118 million (excluding purchaser's costs), reflecting a net initial yield of 5.0%.
This new purpose-built, regional fulfilment centre, a key part of the tenant’s pan-European network, is strategically located in a prime logistics location 35km north east of Rome with good access to the A1 (E45), the principal north-south axis motorway in Italy. The site benefits from good rail and airport connectivity and forms part of a new industrial/logistics park.
This high specification logistics facility, purpose-built in August 2017, has a gross internal
area of c.158,000sqm, is built over three levels with a maximum eaves height of 14 metres and a site cover of 35%. The building has benefited from significant capital investment from the tenant.
The property, which is the occupier’s only regional fulfilment centre in southern Italy, is let on a 15-year full repairing and insuring lease that commenced on 7 August 2017, reflecting an unexpired lease term of just under 14 years. At the end of the 15 year lease there are two six-year extension options in favour of the tenant. The majority of the rent is subject to annual indexation.
Logistics Capital Partners act as asset manager.
Nick Preston, Fund Manager of Tritax EuroBox, commented: “We are delighted to announce the second investment for Tritax EuroBox plc, with the acquisition of this regional fulfilment centre, which provides the Company with 14 years of core foundation income, let at a market level to a world leading online retail company. This purpose-built asset is situated in a prime logistics location just north of Rome, Italy’s
largest urban conurbation. Benefiting from excellent transport connectivity, the property plays a key role in the occupier’s network in Italy and across Europe and has benefited from significant capital investment. Central Italy’s logistics market continues to see strong and growing demand from occupiers with limited availability of large-scale, modern, grade A logistics buildings and development land. Supply/demand dynamics evident in the Rome/Central Italy logistics market provide good income growth potential for this property.”