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Tritax EuroBox buys Action Logistics warehouse near Hannover

Tritax EuroBox buys Action Logistics warehouse near Hannover

Tritax EuroBox buys Action Logistics warehouse near Hannover –  Tritax EuroBox has bought a prime, modern logistics warehouse at Peine, near Hannover, Germany (which they describe as a key logistics location). The property is let to Action Logistics Germany GmbH, a subsidiary of Action BV, the fastest growing non-food discount retailer in Europe, headquartered in the Netherlands and operating across more than 1,253 stores in seven countries [and also one of the largest holdings in many private equity portfolios, such as Standard Life Private Equity]. The total cost is €81.6m (excluding purchaser’s costs), reflecting a net initial yield of 4.8%.

This brand new, well specified, purpose-built asset is in an established logistics location with excellent road, motorway and railway connectivity. Located close to Hannover and Brunswick, on the A2 motorway, which crosses Germany linking Berlin to the Rhine/Ruhr region, the area benefits from excellent logistics links and continues to see high occupier demand, a low vacancy rate and limited availability both of logistics buildings and land for development.

Practical completion of the construction is targeted for November 2018. The lease to Action is for a term of 11-years with three further five year renewal options. The majority of the rent is subject to annual upward only indexation.

The property has a gross internal area of 92,454 sqm, an eaves height of 10.5 metres and benefits from cross-docking with significant yard area and parking. The site cover is approximately 48%.

This acquisition is the first that has arisen from EuroBox’s relationship with Dietz AG (EuroBox uses Dietz as asset manager in Germany and also has access to the Dietz development pipeline). Dietz has retained a small interest in the acquired asset.

Knight Frank acted for the company in this transaction.

Nick Preston, manager of Tritax EuroBox, commented: “This is our fifth investment for Tritax EuroBox plc since IPO in July 2018, bringing the total amount invested to over EUR440m. This off-market acquisition at an attractive yield of a brand new, purpose-built asset, is in a prime logistics location in Germany that benefits from excellent transport connectivity and strong supply/demand fundamentals.

We are delighted with this acquisition, the first in our relationship with Dietz, which demonstrates the high quality assets in prime locations that Dietz develops. We look forward to growing this relationship in the future.”

EBOX / BOXE : Tritax EuroBox buys Action Logistics warehouse near Hannover

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