Tritax EuroBox funds Turin warehouse – Tritax EuroBox says that conditional contracts have been entered into to acquire land and provide forward funding for the development of a new highly specified and sustainable logistics warehouse facility in Settimo Torinese near Turin, Northern Italy for a total consideration of €24.39m.
The property will be developed by LCP IT DC 3 S.r.l. part of the Logistics Capital Partners group of companies, one of the company’s main development partners, under a fixed price development contract. The construction of the facility is expected to complete in 2022.
The high quality and sustainable cross-docked logistics warehouse facility will comprise a gross leasable area of approximately 28,249 square metres and will be arranged as two equal sized units in one single building, capable of being leased either as a single building or two separate buildings. The facility is expected to achieve a BREEAM Very Good rating and to benefit from roof mounted photovoltaic panels.
The facility will be adjacent to the A4 ‘Turin-Trieste’ motorway, east of Turin, Italy’s fourth largest city. The Italian logistics market is currently characterised by record levels of occupational take up, particularly in the northern part of the country, as well as vacancy rates at a low level of around 2 per cent.
The acquisition, currently unlet, benefits from a rental guarantee provided by the developer amounting to approximately €1.277m from completion of the construction of the facility. This amount is based on 12 months of the estimated rental value of the facility, assuming a rent of €45 per sqm on the warehouse space. In addition, the photovoltaic panels are expected to provide income of €45,000 per annum. The transaction reflects an accretive net initial yield of 4.8% after purchase costs and non-recoverable expenditure.
The parent company of the developer is considered as a related party to Tritax EuroBox and therefore the Settimo Torinese proposal is subject to shareholder approval. A circular containing further information about the proposed transaction and a notice convening a meeting will be posted to shareholders as soon as practicable.
EBOX / BOXE : Tritax EuroBox funds Turin warehouse