16th Feb 2022 10:15
(Alliance News) - Tritax EuroBox PLC on Wednesday said it conditionally agreed to the purchase of a logistics asset in the Netherlands for EUR144.3 million from Logistics Capital Partners.
The London-based property investor said the purchase amount reflects the total cost of the land and development expenditure. It also represents a net initial yield of 3.5%, after purchase costs and non-recoverable expenditure.
The transaction is structured as a forward funding development opportunity, Tritax EuroBox said. This means that the property developer will buy the land and fund the construction of the building under a fixed-price contract.
London-based project development and asset management firm London & Cambridge Properties Ltd has already completed the first construction phase back in December, and completion of the second and third phases is expected by December 1 of this year and April 1 of next year.
As part of the proposal, LCP will pay the company income equivalent to the expected rent, until practical completion.
The lease is expected to generate around EUR5.1 million annually on completion of all three phases and will initially be annually indexed to the Dutch consumer price index, Tritax EuroBox noted.
The property is located in Roosendaal in the southeast of the Netherlands. It compromises three units that are already pre-let to an unnamed, global discount supermarket retail group.
Tritax EuroBox said that it will have a total net rentable area of around 113,179 square meters on a total site area of roughly 210,488 square meters.
Shares Tritax EuroBox were up 1.5% at 103.56 pence each on Wednesday morning in London.
By Abby Amoakuh; [email protected]
Copyright 2022 Alliance News Limited. All Rights Reserved.
Related Shares:
Tritax Eurobox