Tritax EuroBox has acquired two assets in Germany for €290.9m, deploying the proceeds of its capital raise in March.
The assets, a 70,000 sqm logistics facility let to a leading German sportswear manufacturer and a 94,800 sqm property let to Wayfair, have a combined rental income of €11.38m a year and were acquired for a combined net initial yield of 3.9%.
The first asset is a 70,000 sqm property located in the Nuremberg region of Bavaria. It was recently built and is the European distribution headquarters of a leading German sportswear manufacturer.
The property has the highest sustainability standards. It is CO2 neutral, built to LEED Gold standard, benefits from certified green energy procurement, has a roof mounted photovoltaic system generating up to 1.5 megawatts of electricity and also is constructed with a 22,500 sqm green roof.
It is let for a further 14 years and benefits from indexation to 100% of the German CPI index, which will start after four years. The 20 hectare site comes with extension potential for an additional 42,000 sqm of floorspace.
The second asset is located in Lich, Hesse, and is classified by Tritax EuroBox as a ‘growth covenant asset’ due its belief in the prospects of the tenant, Wayfair – the furniture and home goods online retailer.
The building is located 60km north of Frankfurt, close to the town of Giessen and leased for 15 years. The lease is annually indexed to 100% of German CPI, following a three year indexation holiday at the commencement of the lease.
The property has been built to high sustainability standards, certified to DGNB Gold standard, and it benefits from a range of operational energy reduction measures. The roof has the capacity to support the installation of solar PV panels.
Both properties have been developed by Dietz AG, a leading European logistics developer, and one of the company’s retained development partners. Dietz AG will remain as a minority shareholder in both assets.
Nick Preston, fund manager of Tritax EuroBox, said: “Following the successful raise of €230m of new equity in March 2021, we are delighted to acquire swiftly these two assets in core logistics locations in Germany, deploying a large part of the equity proceeds recently raised and the proceeds of the profitable sale of an asset in Poland.
“Both buildings are highly sustainable, modern, top specification logistics facilities. They benefit from excellent transport and infrastructure connectivity and are let on long index linked leases to high quality, market leading, global occupiers.
“The growth of our investment portfolio remains underpinned by the stability and resilience of the rental income, and our ability to deliver market-leading returns to shareholders continue to be supported by our expertise, established relationships with experienced developers such as Dietz AG, and our reputation for effective and timely execution of agreed deals. We will continue to exercise discipline in deploying funds into the acquisition of assets which align with our long term strategic goals and meet or exceed our stringent ESG criteria.”
EBOX : Tritax EuroBox in €290m German double buy