Tritax EuroBox has agreed a new lease on a vacant unit at its Nivelles asset in Belgium to Associated Retail SA (trading as Match Supermarkets), the convenience supermarket group located across Belgium, Luxembourg and northern France.
The Nivelles property, comprising two separate logistics units, was acquired by the company in January 2021, immediately after completion of construction, with a gross internal area of 34,119 sqm, (with unit 1 comprising 18,147 sqm and unit 2 comprising 15,972 sqm). The company acquired the asset with unit 1 already leased to Medi-Market Group S.A. on a nine-year lease term without a break at a rent, subject to annual indexation, of €803,000 per annum reflecting €44.3 per sqm.
At acquisition, unit 2 benefited from a 12-month rental guarantee from the purchase date. The company has now let unit 2 to Associated Retail SA, part of the Louis Delhaize Group, with a guarantee from Delfipar SA. The rent will be subject to annual uplifts in line with the Belgian Healthcare Index.
The new lease has been agreed for a nine-year term from 16 November 2021 at an initial annual rent of €755,500 per annum, reflecting a headline rent of €47.3 per sqm. This rental level, on a net effective basis is 8% above the level of the existing lease for unit 1 and the current rental guarantee.
The Nivelles property includes a range of sustainability measures such as LED lighting with motion sensors, insulated exterior walls to achieve good energy performance, cycle storage and a cycle path, along with installation of solar panels to provide tenants with a renewable power source. The company has negotiated a “Green Lease” with Match Supermarkets to include specific clauses in the lease to ensure the commitment of the tenant to use the building in a sustainable way, sharing data on energy, water consumption, waste management and recycling.
Freddie James, assistant fund manager of Tritax EuroBox, said: “This letting provides further tenant diversification across our portfolio and validates our strategy of buying high quality, sustainable assets in prime logistics locations. These locations experience strong occupier demand and allow us to capture the rental growth evident in these markets and enhance shareholder value. This also demonstrates the value of the company’s expertise and local presence through its market-leading asset managers in Belgium, Logistics Capital Partners. We look forward to a long and productive relationship with Match Supermarkets in Nivelles.”
EBOX : Tritax EuroBox secures green lease in Belgium