Tritax EuroBox is pleased to announce that the Company has exchanged contracts to provide forward funding for the development of a new cold store and primary distribution facility at Wunstorf, near Hannover in Germany.
The contract is conditional on receiving the building permit which is expected in the near-term. The property is pre-let to HAVI Logistics GmbH, a global leader in food service logistics focused on innovating, optimising and managing the supply chains of leading brands. HAVI is part of HAVI Global Logistics GmbH, a group with annual turnover of c.€4.5 billion. The development represents an investment of €27.5 million, reflecting a net initial yield of 4.9% on the acquisition.
The site at Wunstorf is 20km from the centre of Hannover, a well-established logistics location in northern Germany, which benefits from excellent infrastructure and connectivity to the extensive road and motorway and rail networks.
The new facility will be HAVI's primary distribution centre focused on the convenience food sector. The facility will be purpose-built to a high specification with a gross internal area of c.16,393 sqm, comprising three ambient and temperature-controlled logistics facilities and ancillary office space. The low site cover of approximately 25% provides for potential extension opportunities on the site that would deliver income growth and value enhancements.
Upon practical completion of the construction, targeted for January 2020, the facility will be fully let to HAVI on a new 15-year lease, with two renewal options of five years. The rent is subject to annual indexation. From completion of the land purchase and during the construction phase, the Company will receive an income return equivalent to the agreed rent from the developer.
The development is being undertaken by Verdion, a highly experienced investor, developer and asset manager specialising in European industrial and logistics real estate.
Nick Preston, Fund Manager of Tritax Eurobox, commented: "We are delighted with our seventh investment for Tritax EuroBox plc. This forward funded development asset, pre-let to a strong tenant covenant in HAVI, will generate an attractive income return for the next sixteen years. Situated in an established prime logistics area near Hannover in Germany, this strategically located asset benefits from excellent transport connectivity.
With strong and growing occupier demand and limited availability of well-located logistics assets and land for development in the region, this acquisition provides good income growth potential in addition to attractive value and income enhancing extension opportunities."