Tritax EuroBox has acquired a logistics facility in northern Italy for €49.65m.
The asset, in Piacenza, comprises two units that were constructed in 2016 and 2020 with a total gross internal area of 47,800 sqm. The units are let on two separate leases to OVS SpA, an Italian fashion brand which uses the property as its European distribution hub. The lease on one unit is for a further 8 years and on the second unit for 9 years. Both leases are subject to annual indexation.
The gross annual rent of €2.01m reflects an average of €44 per sqm which is below prevailing headline rents of €47 per sqm for the location.
The asset fronts the A1 motorway and has good access to this principal north to south corridor connecting Milan to Rome. The A21 east to west route, linking Turin and Brescia, runs in close proximity.
The units are rated BREEAM Very Good and BREEAM Excellent, and have roof mounted photovoltaic systems installed.
Freddie James, assistant fund manager of Tritax EuroBox, said: “Piacenza is a key logistics hub within the Italian logistics sector, a market experiencing high levels of occupational demand and low vacancy rate, which is leading to rental growth. The asset is let below the prevailing rental tone, offering potential for enhanced future income returns. The addition of BREEAM Very Good and Excellent certification complements and further reinforces the Company’s ESG credentials.
“In line with other markets, Italy is seeing growing online retailing and supply chain optimisation, leading to increased demand for the best located logistics properties. The pandemic continues to accelerate these trends and further enhances prospects for the sector. We remain confident these long-term positive 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.”
EBOX : Tritax EuroBox buys in Italy