Tritax EuroBox has acquired a pre-let logistics development in Roosendaal, the Netherlands, for €144.26m. The asset is pre-let to a “top four global discount supermarket retail group” and was purchased from Logistics Capital Partners (LCP), one of the company’s main development and asset management partners.
The purchase price reflects a net initial yield of 3.5%. The lease expires in November 2027 and generates an annual income of €5.1m, indexed annually to Dutch CPI. The lease incorporates a rent review and option to extend for a further five years at the end of the lease term. This review allows the rent to increase to the prevailing open market level, with a cap of 10% above the existing (indexed) rent at that time.
Roosendaal, which is located in the south east of the Netherlands, provides connections to the ports of Rotterdam, Antwerp and Amsterdam. Once complete, the asset will comprise a single property, divided into three units, built in three phases. It will have a total net rentable area of approximately 113,179 sqm.
LCP completed the construction of the first phase in December 2021, with completion of the second and third phases expected by 1 December 2022 and 1 April 2023, respectively. As part of the proposal, during the construction phase, LCP will pay the company income equivalent to the expected rent, until practical completion.
Alina Iorgulescu, assistant fund manager of Tritax EuroBox, said: “We are delighted to announce further deployment into a prime European logistics location, following the Swedish acquisition announced on 17 January. Today’s acquisition cements our commitment to acquire top quality assets in prime locations across Europe, all built to high ESG standards and accommodating leading international occupiers, whilst building our relationship with our partner Logistics Capital Partners.
“By negotiating a market rent review within the lease, we have an opportunity to capture the strong rental growth we are seeing in the Netherlands – as well as in other markets in Europe – where demand for high quality, modern logistics assets outstrips supply, which remains constrained, due to limited land availability in the right locations. We expect this rental growth to continue during the current lease term of the asset as well as creating strong income and capital growth potential and sustainable value for shareholders.”
EBOX : Tritax EuroBox goes Dutch with €144.26m buy
The lease expires in November 2027 and generates an annual income of €5.1m, indexed annually to Dutch CPI. The lease incorporates a rent review and option to extend for a further five years at the end of the sixth year of the lease term.
As it is now February 2022 – and the lease expires in November 2027 – this is only 5 years. I don’t understand the comment about the extension at the end of the 6th year of the lease term.
Apologies this was poorly worded. The lease term started November 2021, so at the end of the lease (which is also the sixth year) there is the option to extend by a further five years. Have amended the wording to make it clearer