22nd Oct 2021 09:34
(Alliance News) - Tritax EuroBox PLC said Friday it has agreed to buy a logistics asset in the Rhine-Ruhr region in Germany for EUR32 million.
"The asset, held freehold, has a total gross internal area of approximately 16,632 square metres and comprises three purpose-built logistics facilities located in the heart of the prime logistics location in the Rhine-Ruhr region," Tritax explained.
Unit 1 is expected to be completed in December 2021 whilst units 2 and 3 will be delivered in January to February 2022.
It continued: "The optimal location of Gelsenkirchen in the Rhine-Ruhr metropolitan region allows the asset to access motorway infrastructure and be a part of the most important logistics hub in Europe, where one quarter of all logistics centres in Germany are located.
"Of the building's three units, Units 1 and 2 are let to strong tenants with robust covenants, whilst Unit 3 is currently vacant with the benefit of a rental guarantee. Noting the sought-after logistics location, which benefits from strong occupier demand and constrained supply, the manager will be seeking to let the vacant unit in the near term."
The asset will generate a total annual rent of EUR1.2 million on leases with a weighted average unexpired lease term of six years.
Tritax Assistant Fund Manager Alina Iorgulescu said: "We are delighted to be acquiring this asset, which is the ninth German investment for Tritax EuroBox, bringing our total amount invested in the country to just over EUR600 million. This off-market acquisition of a new, purpose-built asset is at an attractive yield which also offers opportunities to add value through capturing the convincing rental growth in the area."
Shares in Tritax EuroBox were 0.5% lower in London on Friday at 111.60 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com
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