Aberdeen Standard European Logistics secures debt facility – Aberdeen Standard European Logistics Income has completed the purchase of its property in Erlensee, Germany (gross value EUR33.3 million / net initial yield of 5.2%) and has now completed the acquisition of the freehold logistics warehouse near Krakow, Poland f (net value of EUR24.5 million / net initial yield of 6.8%).
Debt facilities
The company has also announced that it has entered into agreements with DZ HYP AG, the German real estate bank, for the provision of long term financing secured at local level over the assets in Erlensee and Florsheim, Germany. The loan facility secured over the Erlensee property has been arranged for a total value of EUR17.8 million and fixed for a 10 year term at an all-in interest rate of 1.62% per annum. The Florsheim debt facility is for a total value of EUR12.4 million and fixed for a seven year term at an all-in interest rate of 1. 539% per annum.
Evert Castelein, the manager, commented: “The loan arrangements with DZ HYP AG are both long term and at very competitive interest rates, underlining the quality of the assets in the portfolio. We continue to believe that Europe maintains a clear advantage over UK logistics assets in terms of yields and such low financing costs and that strong demand, when combined with a lack of suitable product, reinforces our belief that there is further scope for capital and income growth in the years ahead. This financing will help the Company in its aim to provide shareholders with a regular and attractive level of income return together with helping underpin this growth potential.”
ASLI : Aberdeen Standard European Logistics secures debt facility