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Tritax EuroBox buys in Germany

Tritax EuroBox has acquired a logistics asset in the Rhine-Ruhr region of Germany for €32m, as it sets about deploying the proceeds of its recent equity raise.

The asset, located in Gelsenkirchen, has a total gross internal area of 16,632 sqm and comprises three purpose-built logistics facilities located in the heart of the prime logistics location in the Rhine-Ruhr region. Unit 1 is expected to be completed in December 2021 whilst units 2 and 3 will be delivered in January-February 2022.

It is located in one of the most important logistics hub in Europe, where one quarter of all logistics centres in Germany are located.

Of the building’s three units, Units 1 and 2 are let to strong tenants with robust covenants, whilst Unit 3 is currently vacant with the benefit of a rental guarantee. Noting the sought-after logistics location, which benefits from strong occupier demand and constrained supply, the manager will be seeking to let the vacant unit in the near term.

The asset will generate a total annual rent of €1.21m on leases with a weighted average unexpired lease term of six years. The acquisition price reflects a net initial yield of 3.7% based on the income from the existing leases and rental guarantee, with the opportunity to capture upside from the letting of the vacant unit under rental guarantee.  

Completion of the acquisition is subject to practical completion of the construction of Unit 1, anticipated in December 2021. Given the developer, Dietz AG, is considered a related party to the company under the Listing Rules, the Gelsenkirchen Proposal is subject to shareholder approval. 

EBOX : Tritax EuroBox buys in Germany

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