Aberdeen Standard European Logistics buys Dutch warehouse – Aberdeen Standard European Logistics Income has signed an agreement to acquire a freehold logistics warehouse in ‘s-Heerenberg, The Netherlands, for a net value of EUR24.0 million providing an expected net initial yield of 5.0%. The transaction is expected to close in July 2019.
This is a freehold facility providing a warehouse, cross dock and 40 loading bays covering almost 23,000 square metres. The total site size of 45,000 square metres offers expansion opportunities in the future.
The warehouse is fully leased to third-party logistics operator JCL Logistics Benelux BV, a wholly owned subsidiary of JCL Switzerland AG. The lease has a remaining term of 12.5 years and is fully CPI indexed. JCL have a long history in ‘s-Heerenberg and provide services to their clients who produce bikes and associated parts in Asia and the USA.
‘s-Heerenberg itself is located close to the German border (Emmerich barge terminal) and has good accessibility to the A12 and A3 motorways with the A12 being the main connection between the port of Rotterdam and Germany. Other operators in the area include Main Freight and DSV.
Zeewolde completion
The company has also just completed on the newly built warehouse in Zeewolde, the Netherlands, for the previously indicated purchase price of EUR29.25 million providing a net initial yield of 5.0%. The agreement with developer Borghese was structured as a forward funded transaction with a 2.55% coupon rate.
The freehold property was pre-let to VSH Fittings B.V., a strong covenant tenant, on a 15 year lease commencing in June 2019 with capped CPI indexation of 2.4% per annum in accordance with local provisions. VSH Fittings B.V. was founded 85 years ago and is a wholly-owned subsidiary of Aalberts Industries N.V., a Euronext listed company with over 16,000 employees, 70 business locations and activities in over 50 countries. The company specialises in the production and distribution of industrial valve products and fittings used for sprinklers, heating and piping systems.
Zeewolde is in the heart of the Netherlands in the province of Flevoland, close to Almere, the fastest growing municipality in the Netherlands and Lelystad, an ideal location for national distribution. Zeewolde is also situated close to several motorways, the A6, A27 and A28. In addition to its central location in the Netherlands, Zeewolde is well positioned with regards the availability of labour and the relatively low land costs, resulting in attractive rent levels.
The property is situated within an established logistics business park, alongside other well-known logistics companies. The tenure is freehold and the total plot size is 55,000 square metres, with the warehouse comprising 35,000 square metres alongside office space and 161 parking places.
New financing
The Ccompany has also arranged long term financing on its Dutch properties in Ede, Oss and Waddinxveen. This secured loan facility arranged with Berlin Hyp for a total value of EUR37.7 million has been fixed for a six year term. The proceeds used to finance the purchase of ‘s-Heerenberg in addition to further stage payments on the forward funded project in Oss and final completion payment on Zeewolde.
On completion of the purchases of Oss and ‘s-Heerenberg and the finalisation of bank facilities, overall asset-level gearing will be around 35% of gross assets (versus a 50% maximum). This level may fluctuate as and when new assets are acquired until longer term funding has been established or whilst short term asset management initiatives are being undertaken.
ASLI : Aberdeen Standard European Logistics buys Dutch warehouse