Tritax EuroBox acquires a distribution centre in Barcelona – Tritax EuroBox (EBOX/EBOX) has announced that it has acquired a global distribution centre at Lliçà d’Amunt, Barcelona. It is currently let to Punto Fa S.L., trading as MANGO, the fashion retailer. The total consideration is €150 million (excluding purchaser’s costs), reflecting a net initial yield of 5.0% on the corporate acquisition. This is an “off-market investment by Tritax EuroBox.
The property
The global distribution centre, which is described in the news release as “state-of-the-art”, is used to distribute to Mango’s worldwide store network.
- It is located 25 km north of Barcelona and is directly accessible from the European motorway network. Barcelona’s port and airport are within a 25-minute drive.
- It is described as a high specification logistics facility, which was purpose-built in 2016. it has a gross internal area of 186,138 sqm and a maximum eaves height of 40 metres and multi-level mezzanines. The building has benefited from capital investment incorporating 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.
- The property also benefits from two options to extend the property on an adjacent plot of land. If implemented, these extensions would increase the size of the asset by over 55,000 sqm.
Comment from Nick Preston, Fund Manager of Tritax EuroBox,
“We are delighted to announce the first investment for Tritax EuroBox plc and to be investing in this prime, state-of-the-art, global distribution centre let on a long lease to Mango, a leading global fashion retailer. This property plays a critical role in Mango’s global supply chain and has benefited from significant capital investment with high levels of automation.
Barcelona is Spain’s second largest city and its logistics market is one of the strongest in Europe, with deep tenant demand and a very constrained supply of available logistics buildings and development land, especially for logistics assets of this size. We believe that the supply/demand dynamics evident in the Barcelona logistics market provide good income growth potential for this property.”
More on Tritax EuroBox
Tritax EuroBox’s objective is to build a well located portfolio of continental European logistics assets, that are expected to deliver an attractive capital return and secure income to shareholders.
The portfolio of distribution or logistics assets is expected to be diversified by geography and tenant. The manager is targeting well located assets in established distribution hubs, within or close to densely populated areas. The focus will be on investments in properties fulfilling a key part of the logistics and distribution supply chain for occupiers including retailers, manufacturers and third-party logistics operators. The majority of the portfolio is expected to be invested in large, modern distribution and logistics assets.
A proportion of the portfolio may offer exposure to urban distribution hubs, which help occupiers fulfil the “final mile” part of the distribution chain. The company will seek to invest in locations with limited supply of distribution or logistics assets that are likely to benefit from structural changes in occupational demand and/or assets benefiting from long term index-linked leases.
The company targets and seeks to maintain a weighted average unexpired lease term of greater than five years across the portfolio in accordance with typical lease lengths prevalent in continental Europe.
EBOX/BOXE : Tritax EuroBox acquires a distribution centre in Barcelona