The Board of Tritax EuroBox plc, which invests in Continental European logistics real estate assets, is pleased to announce that it has acquired a global distribution centre at Lliçà d’Amunt, Barcelona let to Punto Fa S.L., trading as MANGO (“Mango”), one of the
world’s leading fashion retailers. The total consideration is €150 million (excluding
purchaser's costs), reflecting a net initial yield of 5.0% on the corporate acquisition
This state-of-the-art global distribution centre which distributes to Mango’s worldwide store network is located 25 km north of Barcelona and is directly accessible from the European motorway network. Barcelona’s port and airport are within a 25-minute drive.
This high specification logistics facility, purpose-built in 2016, has a gross internal area of
186,138 sqm, a maximum eaves height of 40 metres and multi-level mezzanines. The
building has benefited from significant capital investment incorporating a high level of
automation and racking.
The property is let on a 30 year full repairing and insuring lease that commenced on 20
December 2016, reflecting an unexpired lease term of over 18 years to the first tenant break option in 2036, with further break options in 2039 and 2042. The rent is subject to annual upward only indexation. This off-market investment also benefits from two options to extend the property on an adjacent plot of land. If implemented, these extensions would increase the size of the asset by over 55,000 sqm.
Nick Preston, Fund Manager of Tritax EuroBox, commented:
“We are delighted to announce the first investment for Tritax EuroBox plc and to be investing in this prime, state-of-the-art, global distribution centre let on a long lease to Mango, a leading global fashion retailer. This property plays a critical role in Mango’s global supply chain and has benefited from significant capital investment with high levels of automation. Barcelona is Spain’s second largest city and its logistics market is one of the strongest in Europe, with deep tenant demand and a very constrained supply of available logistics buildings and development land, especially for logistics assets of this size. We believe that the supply/demand dynamics evident in the Barcelona logistics market provide good income growth potential for this property.”