Tritax EuroBox has signed two new leases across its continental European logistics portfolio, adding €1.3m of rental income.
The first is the 14,150 sqm letting of Unit 1 of the speculatively developed Settimo asset in Italy to a “leading Italian logistics specialist”. The letting comes just three weeks after practical completion of the 28,300 sqm asset.
A six-year green lease has been entered into, which includes a further six-year extension option and annually reviewed inflation linked uplifts. The rental level agreed is in line with estimated rental value (ERV) and consistent with the development funding underwrite.
The second letting is a new seven-year lease for Unit 3 (8,300 sqm) at the group’s Bochum asset in Germany. A new seven-year green lease (with a three-year extension option) has been agreed with rental uplifts linked 100% to CPI indexation, reviewed annually.
The letting, to a German specialist catering equipment company, is 32% above the current passing rent and 16% ahead of the ERV as at 31 March 2023. A green lease clauses exists, which commits the tenant to use the building sustainably, along with an obligation to share resource usage data.
Phil Redding, chief executive of Tritax EuroBox, said: “These lettings, combined with our recently announced asset disposal in Hammersbach, Germany, provide further evidence of the successful delivery of our strategy. They demonstrate strong occupier demand in Italy as well as robust ERV growth in Germany, which we have been able to capture as we pursue the portfolio’s 15% reversionary potential. These leases highlight our ability to target the embedded opportunities within our portfolio and secure additional income from our assets.
“The high-quality nature of our portfolio is reflected in the pace at which we are able to let newly developed assets and the rental levels we are achieving. Through asset management activities we are adding long-term rental income to the portfolio at attractive levels from high-calibre customers.”
EBOX : Tritax EuroBox secures two new lettings