Tritax EuroBox has agreed a second lease at its two-unit asset in Settimo Torinese, a prime logistics location near Turin, Italy.
The new six-year lease has been secured with the same leading Italian logistics provider which signed a lease for the other unit in August 2023.
The letting for the second unit (14,197 sqm) at the company’s 28,287 sqm two-unit development, is on a six-year green lease that includes a further six-year extension option and annually reviewed inflation-linked rental uplifts.
The rent agreed is 8% above both the estimated rental value (ERV) as at March 2023 and the rent agreed for the first unit, which was signed in August 2023 and commenced on 1 October.
The building includes a roof-mounted solar PV scheme and other sustainability features that reduce its environmental impact. These support the targeted BREEAM Very Good rating.
Asset background
Tritax EuroBox forward funded the development of this speculatively developed building in June 2021 from LCP, with each unit subject to a rental guarantee of 12 months’ rent from practical completion in July 2023.
Company commentary
James Charlesworth, asset management director of Tritax EuroBox, said: “This letting provides further evidence of the successful delivery of our strategy of purchasing high-quality and sustainable buildings, developed in sought-after locations, close to major population centres and with easy access to great transport links.
“Securing this lease ahead of the rental guarantees expiry to an existing strong customer, further demonstrates the attractiveness of our assets, the continuing good occupier demand in Italy and our ability to add long-term rental income to the portfolio.”
EBOX : Tritax EuroBox completes Italian job, fully letting Turin asset