Acquisition of Two Highly Sustainable Logistics Assets in Prime Locations in Germany For €290.0m

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Key facts

Location: Bornem, Belgium
Investment pillar: Value Add Asset
Acquisition price:
 €26.0 million
Net initial yield: 5.3% on the corporate acquisition
GIA: 30,914 sqm
Eaves height: 10 metres
Lease expiry: unexpired lease term of over 7 years
Acquisition date: October 2018


Further information

  • This modern asset comprises two warehouses which combined have a gross internal area of c.31,000 sqm.
  • The first building is a multi-let warehouse with two interconnected units. Unit 1 is let to Alcon-Couvreur NV (a world leader in eye care and part of Novartis, one of the world’s largest pharmaceutical companies), on a lease that expires on 31 August 2027, subject to a break option in August 2022, which includes a penalty if the break is exercised. This provides a maximum unexpired lease term of nine years. Unit 2 is let to Pharma-Distri Center NV (an independent logistics business, which stores, packs and distributes pharmaceutical products across Europe for a range of leading pharmaceutical clients), on two co-terminus leases, expiring on 31 January 2020, providing 1.25 years unexpired term. The tenant provides logistics services to the adjacent tenant Alcon-Couvreur NV.
  • Upon acquisition the second building was a vacant warehouse benefitting from 12-month rent and service charge guarantee from the vendor. There are also three vacant plots of land at the Bornem site, totaling 4.5 hectares.
  • On the 20 March 2018, within approximately four months from acquisition, the Company announced the letting of the 16,835 sqm vacant unit to Belgische Distributiedienst NV (“BD NV”), is part of the BD myShopi NV group, who will act as guarantor to the lease.
  • The lease has been agreed for a nine-year term from 1 July 2019 at an initial annual headline rent equal to 30% above the level of the rental guarantee secured at acquisition. The new rent is indexed from 1 July 2019 and will compound annually at 100% of the Belgian Health Index. Works are ongoing to facilitate the tenant’s extensive fit out plans in advance of the lease commencement date.
  • Following the completion of this new letting, which demonstrates the strong occupier demand and limited availability of logistics buildings in the region, the property will be fully let.

For related information see Our Properties and Portfolio Summary