Tritax EuroBox is delighted to announce the completion of a new lease at the Company's property in Bochum, a prime logistics location in the Rhine-Ruhr region of Germany.
This modern, multi-let property situated in the centre of Germany's densely populated industrial heartland, was acquired by the Company in November 2018 with two leases in place and two unoccupied units benefiting from five-year rental guarantees.
Following the letting of the first vacant unit in March 2019 to Gruber Logistics GmbH, the Company has now let the second vacant unit of 8,335 sqm to Recht Logistik GmbH, an established German logistics and transportation company based in Nord Rhein Westphalia.
This new lease has been agreed for a five-year term from 1 February 2020 at a headline rent which is higher than both the previous rental guarantee and current passing rent at the neighbouring units. This demonstrates the quality of both the asset and location, as well as the reversionary potential of the remainder of the building. The new rent will be subject to full annual indexation reflecting 100% of the German Consumer Price Index.
Following the completion of this new letting, this well-specified property is now fully let with Recht Logistik and Gruber Logistics occupying the property alongside the two existing tenants, SVH Handels GmbH and WM Group GmbH.
Nick Preston, Fund Manager of Tritax EuroBox, commented: "This additional letting at Bochum further diversifies our tenant base and also further validates our strategy of buying high quality assets, situated in prime logistics locations benefiting from favourable supply/demand dynamics. In line with our identified strategy, we have delivered income and value enhancement by securing this leasing ahead of previous passing rents, as well as highly attractive indexation provisions. We look forward to a long and productive working relationship with Recht Logistik."