Tritax EuroBox announces that it has acquired two prime, modern logistics facilities in the GVZ Freight Village of Bremen in Germany for a total consideration of €60.3 million, reflecting a net initial yield of 4.8%, which is highly reversionary against current market rents in this location.
Purpose-built in 2013 and 2019 respectively, these two high specification facilities have a combined gross internal area of 57,537 sqm, eaves heights of 12.2 metres along with significant yard area and parking.
The 2019 property is exclusively let to Bremen based logistics operator Kieserling Spedition + Logistik on a ten-year lease from February 2019. The 2013 property is let to Kieserling Spedition + Logistik, THIMM Packaging Systems, a leading packaging and logistics company and Bremer Spirituosen, on shorter leases with the benefit of a third-party rental guarantee. The weighted unexpired lease term of both properties is 8.1 years, with rent subject to annual indexation of 85% of the German CPI.
The properties are situated in the prime logistics location of GVZ Bremen, the second largest metropolitan city in north-west Germany and it is the largest freight area in Germany, close to Bremen and Bremerhaven, the country’s second largest port area. The area benefits from excellent road infrastructure as well as national and international transport connections via Bremen International Airport and the high-speed railway network. This core location benefits from a low vacancy rate, strong occupier demand and limited availability of logistics buildings and land for development which has driven recent rental growth. The area also has a strong and flexible labour pool to draw upon.
Nick Preston, Fund Manager of Tritax EuroBox, commented: "Situated in Bremen, one of the strongest logistics locations in Germany, these two modern, high specification facilities provide attractive income with scope for reversionary income growth and identified value enhancement through asset management. Bremen benefits from excellent transport and infrastructure connectivity, strong occupier demand and extremely low vacancy rates which underpin the rental growth evidenced in the region. The acquisition of these two well-specified assets adds further to our high-quality logistics portfolio across Continental Europe, which now totals €670 million of which €212 million is in Germany."