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Agreed new leases on two assets in Germany and Belgium

Tritax EuroBox plc, which invests in high-quality, prime logistics real estate strategically located across continental Europe, announces it has successfully agreed new leases on two of its assets which together add €1.3 million to contracted annual rent.

17 May 2022

Hammersbach, Germany – adding value through asset management

We have realised significant value through asset management by securing a new lease to an established German third party logistics provider on our 43,000 sqm building near Frankfurt.

Key highlights include:

▪ Growing rents by 24% to €3.1 million from €2.5 million per annum.
▪ New lease includes annual and uncapped CPI linked indexation uplifts.
▪ New seven year term, with tenant option to extend the lease by a further five years (subject to a market rent review at extension).
▪ Inclusion of our standard Green Lease clauses.

Bornem, Belgium – adding value through development

In line with our strategy to increase our exposure to attractive development opportunities, we have successfully let a newly constructed 15,000 sqm building to a leading online grocery retailer.

Key highlights include:

▪ Nine year lease, tenant break options at year three and six including annual indexed rent generating €0.7m per annum initially.
▪ Rental levels achieved represent a 14% increase on previous rents secured on the site.
▪ Delivers significant value to shareholders with a profit on cost of 70% and yield on cost of 7%.
▪ Meets our ESG objectives through implementation of a green lease, installation of 250kw per annum of solar renewable energy as well as energy efficient LED lighting.

Nick Preston, Fund Manager of Tritax EuroBox, commented:
“These leases demonstrate the successful implementation of our strategy, delivering attractive levels of rental growth to our shareholders through a combination of asset management and development activity. Our proactivity complements the attractive long-term and inflation linked income generating characteristics of our portfolio. In addition, these leases provide further evidence of the accelerating levels of rental growth within key European logistics locations. Through a combination of our strong existing portfolio, asset management and increasing development activity we are well placed to capture the strong fundamentals that are driving rental and valuation growth.”


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Hammersbach And Bornem Lettings Announcement RNS FINAL
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