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Tritax EuroBox splashes €66.8m in Poland

Tritax EuroBox has acquired two recently developed prime logistics properties and development land in Poland for €66.8m.

The purchase of the assets, which are located in Strykow, near Lodz in Central Poland, reflects a net initial yield of 6.1%.

Tritax EuroBox also has the option to buy development land adjacent to one of the buildings for a further €15m.

The two modern buildings, which were completed in 2018, have gross internal areas of 43,218 sqm and 34,442 sqm.

Of the 77,660 sqm, 55,447 sqm is let to three tenants while 22,213 sqm is currently vacant but benefits from a two-year vendor’s rental guarantee. This reflects a weighted average unexpired lease term of 5.0 years to expiry (4.5 years to break). All rents are subject to annual upwards only indexation to 100% of local CPI.

Building 1 comprises of 43,218 sqm and is let to logistics company Arvato Polska, part of Bertelsmann Group, until January 2025 with tenant break option in January 2024. Arvato provides international, third party logistics services for retailer H&M from this building.

Building 2 is let to two tenants, with 8,942 sqm let until July 2029 to Stalatube, a leading provider of stainless-steel solutions, and 3,287 sqm let to the Polish operations of German packaging company Tillmann Wellpappe, until July 2029 with a parent company guarantee.

The development land could accommodate a building of around 22,400 sqm. Tritax EuroBox has entered into a funding agreement with the vendor to bring forward development of this phase on letting, increasing the company’s investment in the asset by around €15m.

Marketing of the vacant space and the development site is being carried out by the vendor, European Logistics Investment and its joint venture development partner Panattoni.

Nick Preston, fund manager of Tritax EuroBox, said: “This is the twelfth investment for Tritax EuroBox, bringing the total amount invested to over €784.1m and the company’s loan to value to 43%, close to the target level of 45%. The off-market acquisition of these newly developed, high specification assets situated in a prime logistics location at Strykow in Poland, is at an attractive and accretive yield.

“We are confident of delivering the identified asset management plan that is expected to provide further value from these assets, capitalising on this established logistics location with strengthening supply/demand fundamentals, excellent transport links and a robust labour market. Together, this will further support the company’s delivery of secure long-term income to shareholders and an attractive total return.”

EBOX : Tritax EuroBox splashes €66.8m in Poland

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