Tritax EuroBox has acquired an asset in Belgium for €31.2m, bringing the group to full deployment of equity and debt.
The newly built 34,125 sqm logistics facility in Nivelles, south of Brussels, comprises two units (one of 18,140 sqm and the other 15,985 sqm) and will be bought from Logistics Capital Partners, a European developer and one of the company’s main development partners.
The larger unit is let to Medi-Market Group SA, a Belgian omni-channel pharmacy retailer on a new nine-year lease. The rent is subject to annual indexation. The second unit is currently vacant and has a 12-month rental guarantee. The company said it was in discussion with various parties interested in leasing the space and was confident of quickly letting the space. The acquisition price reflects a net initial yield of 4.8% based on the income from the in-place lease and the rental guarantee.
Roof mounted photovoltaic panels have been installed and a power purchase agreement is in place with Medi-Market. Additionally, the asset benefits from sustainability features including LED lights, energy efficient heating and rainwater recycling.
The group said the Belgian logistics market was severely supply constrained, with vacancy rates at historic lows of around 1% of total stock.
Nick Preston, fund manager, said: “Before the Covid-19 pandemic struck we had identified the structural changes in the European logistics market, with growing online retailing and supply chain optimisation, leading to increased demand for the best located logistics properties. The pandemic has accelerated these trends and further enhanced the prospects for the sector. We remain confident that these structural tailwinds, combined with our high-quality portfolio and our ability to unlock value from it, will help ensure that we will continue to deliver shareholder value.”
Tritax EuroBox is now fully invested and is looking at options to expand the portfolio. QuotedData recently published research on the company that can be read here.
EBOX : Tritax EuroBox acquires Belgium logistics scheme for €31.2m