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

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Key facts

Location: Lliçà d’Amunt, Barcelona, Spain
Investment pillar: Foundation Asset
Acquisition price: €150.0 million
Net initial yield: 5.0% on the corporate acquisition
GIA: 186,138 sqm
Eaves height: 40 metres and multi-level mezzanines
Lease expiry: unexpired lease term of over 18 years to the first tenant break option in 2036 (further break options in 2039 and 2042)
Acquisition date: September 2018

Further information

  • A state-of-the-art global distribution centre which distributes to Mango’s worldwide store network is located 25km north of Barcelona and is directly accessible from the European motorway network. Barcelona’s port and airport are within a 25-minute drive.
  • Purpose-built in 2016, this high specification logistics facility has a gross internal area of 186,138 sqm, a maximum eaves height of 40 metres and multi-level mezzanines. The building has benefited from significant capital investment incorporating a high level of automation and racking.
  • The property is let on a 30 year full repairing and insuring lease that commenced on 20 December 2016, reflecting an unexpired lease term of over 18 years to the first tenant break option in 2036, with further break options in 2039 and 2042. The rent is subject to annual upward only indexation.
  • Upon acquisition this investment benefited from two options to extend the property on an adjacent plot of land, which if implemented could extend the size of the asset by over 55,000 sqm.
  • On 27 November 2019, the Company agreed to fund an 88,000 sqm extension on the adjacent plot of land. The Company will finance the construction of the extension at an attractive yield on cost, for an estimated capital commitment of €30.5 million. Construction is anticipated to start by Autumn 2021, once all necessary permissions have been obtained and in line with Mango’s strategic objectives and development programme.
  • Upon practical completion, targeted for Spring 2023, the extension will be incorporated into the existing full repairing and insuring lease that commenced in December 2016 on a 30-year term, reflecting an unexpired lease term on completion of the extension of c.14 years to the first tenant break option in 2036, with further break options in 2039 and 2042. The rent is subject to annual upward only indexation.
  • As part of the extension, the Company and Mango have agreed to work together to optimise and reduce energy consumption within both the existing building and the extension in order to improve the overall environmental performance of the property.

For related information see Our Properties and Portfolio Summary