To see the research please follow link belowRead more
Tritax EuroBox plc (tickers: EBOX (Sterling), BOXE (Euro)), which invests in Continental European logistics real estate, is pleased to announce that it has acquired a prime, modern logistics facility near Frankfurt in Germany for a total consideration of €50.6 million, reflecting a net initial yield of 4.75% on the corporate acquisition.
This brand new, well specified, purpose-built facility has a gross internal area of c.43,000 sqm, an eaves height of 12 metres, a significant yard area and parking facilities. It is situated in the prime logistics location at Hammersbach, near Frankfurt, which benefits from exceptional logistics links and has high occupier demand, a low vacancy rate and limited availability both of logistics buildings and land for development.
The new facility, developed by Dietz AG (“Dietz”), the Company’s asset manager in Germany, is let to ID Logistics, an international contract logistics group and listed on Euronext Paris with approximately 300 sites worldwide across 17 countries. Dietz has retained a small interest in the acquired asset.
This facility is entirely let to ID Logistics on a new 10-year lease term, with breaks after years 5 and 6. The lease is subject to annual upward only indexation of 100% of German CPI, after year 3 of the lease. ID Logistics will be servicing a financially robust world leading retailer from this facility.
Nick Preston, Fund Manager of Tritax EuroBox, commented:
“We are delighted with our ninth investment for Tritax EuroBox plc, bringing our total amount invested to over €600 million. This off-market acquisition of a brand new, well specified, purpose-built big box logistics asset is in a prime logistics location in Germany that benefits from excellent transport and infrastructure connectivity and strong supply/demand fundamentals.
We expect this property to generate an attractive income return with good income growth potential. This is our third investment through our relationship with Dietz, which demonstrates the high-quality of their development assets in prime locations.”
FOR FURTHER INFORMATION, PLEASE CONTACT:
+44 (0) 20 7290 1616
Jefferies International Limited
+44 (0) 20 7029 8000
Kempen & Co N.V.
Thomas ten Hoedt
+31 (0) 20 348 8500
Maitland/AMO (Communications Adviser)
+44 (0) 20 7379 5151
Tritax EuroBox plc invests and manages a well-diversified portfolio of well-located Continental European logistics real estate assets that are expected to deliver an attractive capital return and secure income to shareholders. These assets fulfil key roles in the logistics and distribution supply-chain focused on the most established logistics markets and on the major population centres across core Continental European countries.
Occupier demand for Continental European logistics assets is in the midst of a major long-term structural change principally driven by the growth of e-commerce. This is evidenced by technological advancements, increased automation and supply-chain optimisation, set against a backdrop of resurgent economic growth across much of Continental Europe.
The Company’s Manager, Tritax Management LLP, has assembled a full-service European logistics asset management capability including specialist “on the ground” asset and property managers with strong market standings in the Continental European logistics sector. The appointed asset managers Logistics Capital Partners (“LCP”) and Dietz AG (“Dietz”) are logistics specialists and offer the Company exposure to high quality asset management expertise and access to their respective development pipelines, providing acquisition opportunities across Continental Europe.
The Company is targeting, on a fully invested and geared basis, an initial Ordinary Share dividend yield of 4.75% p.a.1, which is expected to increase progressively through regular indexation events inherent in underlying lease agreements, and a total return on the Ordinary Shares of 9.0% p.a.1 over the medium-term. The Company intends to pay dividends on a quarterly basis with shareholders able to receive dividends in Sterling or Euro.
Further information on Tritax EuroBox plc is available at www.tritaxeurobox.co.uk
1. Euro denominated returns, by reference to IPO issue price. These are targets only and not profit forecasts. There can be no assurances that these targets will be met and they should not be taken as indications of the Company’s expected or actual future results.