Tritax Eurobox buys another facility in Hannover- Tritax Eurobox (EBOX/BOXE) has exchanged contracts to provided forward funding for a new development of a new cold store and primary distribution facility at Wunstorf, near Hannover Germany. The contract is conditional on receiving the building permit. The development represents an investment of €27.5 million, which gives a yield of 4.9% on the acquisition.
The site is in Wunstorf which is 20km from the centre of Hannover, which is well established logistics centre in Northern Germany. The area has excellent infrastructure and easy access to road, motorway, and railway. The building is already pre-let to HAVI Logistics GmbH which is a global leader in food service logistics. the building will be HAVI’s primary distribution centre focused on the convenience food sector. The facility will be a purposed built with a area of 16,393 sqm. The site will only cover 25% of the total property so there is room for a possible expansion. The facility is being developed by Verdion, who is highly experienced in the European industrial and logistics real estate.
Once the building is complete, which is targeted for January 2020, it will let to HAVI for a 15 year lease with two possible 5 year extensions on the lease. The rent is subject to annual indexation. Once the land is purchased and during construction Tritax will receive an income return equivalent to the agreed rent from HAVI.
Nick Preston, fund manager for Tritax Eurobox, had this to say about the recent acquisition:
“We are delighted with our seventh investment for Tritax EuroBox plc. This forward funded development asset, pre-let to a strong tenant covenant in HAVI, will generate an attractive income return for the next sixteen years. Situated in an established prime logistics area near Hannover in Germany, this strategically located asset benefits from excellent transport connectivity. With strong and growing occupier demand and limited availability of well-located logistics assets and land for development in the region, this acquisition provides good income growth potential in addition to attractive value and income enhancing extension opportunities.”
EBOX/BOXE-Tritax Eurobox buys another facility in Hannover