Tritax EuroBox has agreed a lease re-gear, a new lease and associated solar PV Power Purchase Agreement (PPA) at Logistics Park Bornem, Belgium.
The re-gear and new lease are both eight-year, inflation-linked leases and have been signed, together with the PPA, with an existing customer, which is a leading global pharmaceutical and medtech company.
The lease re-gear is for unit B (13,945 sqm) and the new lease is for unit C (14,935 sqm) at the company’s 45,850 sqm three-unit development in Bornem, which is located 34km both from the Port of Antwerp and Brussels.
The unit B re-gear extends the unexpired lease term by five years to August 2032, with a tenant break option in August 2030. The rent remains at the passing rack rented level.
The new lease on unit C is based on the same terms as unit B with the rent subject to an open market review (capped at 20% uplift) 12 months from the commencement of the lease. A surrender premium has also been agreed with the former tenant of unit C.
Both leases benefit from 100% inflation indexation, which will be reviewed annually, and include Tritax EuroBox Green Lease clauses.
A new PPA for both units consolidates the income produced by the units’ solar PV scheme, which have a combined generating capacity of 1.35MWp. This will benefit both the company and the customer by improving the current solar-related income on the Logistics Park for the company as well as creating cost savings for the tenant and a positive environmental impact by reducing CO2 emissions.
The asset was acquired by the company in October 2018, with Unit C developed in 2021 and leased to an online grocery retailer.
The leasing opportunity follows the previous tenant’s decision to consolidate operations back to their headquarters in The Netherlands a year ahead of their break date. The customer in unit B saw the potential to expand into the neighbouring unit, enabling them to efficiently consolidate their operations at Bornem, a strategic location for them due to its proximity to their main laboratory facility only 6km away.
James Charlesworth, asset management director of Tritax EuroBox plc, commented: “This re-gear and new lease underline our ability to support the growth ambitions of our customer and secure long-term commitments to our well-located assets. The agreement of a new PPA increases solar-related income, with the inclusion of green clauses further enhancing the asset’s ESG profile. The multi-faceted agreement reflects our approach of building long-term relationships with market-leading occupiers and capturing additional income on our high-quality parks.”