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Tritax EuroBox acquires €50m logistics property in the Netherlands

Tritax EuroBox, which invests in Continental European logistics real estate assets, has acquired a prime newly developed logistics property at Breda, in the Netherlands, for €50.3m.

The deal reflects a net initial yield of 4.6%, with the potential to add value through the letting of the vacant units.

The property, purpose-built in November 2019, is situated in an established logistics location along the main east-west logistics corridor in the Southern Netherlands. The property also benefits from good railway and port connectivity with the ports of Rotterdam and Antwerp 50km to the north and 50km to the south, respectively.

The property has a gross internal area of 46,185 sq m and is divided into four units, with an eaves height of 12 metres and with significant yard area and parking. The building is fitted with LED lighting and solar panels.

This investment is fully income producing from one lease and a rental guarantee and offers attractive scope for value and income enhancing opportunities.

Two units with a combined gross internal area of 20,415 sq m are leased to Abbott Logistics on a new 10-year lease term. Abbot Logistics is part of Abbott Laboratories, a medical devices and healthcare company listed on the New York Stock Exchange with a market capitalisation of $150bn. The lease is subject to annual indexation of 2.0% per annum.

The remaining two units with a combined gross internal area of 25,857 sq m benefit from a 12-month third party rental guarantee to the company. The company said it had already received expressions of interest from several potential occupiers.

Nick Preston, fund manager of Tritax EuroBox, said: “We are delighted to announce the eleventh investment for Tritax EuroBox and our first acquisition in the Netherlands. This newly developed, high specification sustainable asset is situated in Breda, a prime logistics location, which benefits from excellent transport connectivity and a robust labour market.

“We are confident of delivering the identified business plan to produce further value from this asset, capitalising on this attractive logistics location with increasingly strong supply/demand fundamentals, which will further support the Company’s delivery of secure long-term income to shareholders and an attractive total return.”

EBOX : Tritax EuroBox acquires €50m logistics property in the Netherlands

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