European logistics specialist Tritax EuroBox has agreed the acquisition of a €31.2 mln asset in Nivelles, Belgium.
This is the company’s thirteenth asset, a newly-built 34,125 m2 logistics facility comprising two units (one of 18,140 m2 and the other 15,985 m2), located in the attractive logistics market of Nivelles, south of Brussels in Belgium. The property will be bought from Logistics Capital Partners (LCP), one of the company’s main development partners.
The larger unit is let to Medi-Market Group, a Belgian omni-channel pharmacy retailer on a new nine-year lease. The rent is subject to annual indexation. The second unit is currently vacant and has a 12-month rental guarantee. The company said that it is already in discussions with various parties interested in leasing the space.
The acquisition price of €31.2 mln reflects a net initial yield of 4.8% based on the income from the in-place lease and the rental guarantee.
Completion of the acquisition is subject to practical completion of the development that is anticipated in mid-December 2020. LCP will then continue to manage the asset, as part of its ongoing management contract across the portfolio.
The Nivelles acquisition takes Tritax Eurobox’s loan to value ratio to approximately 44%, assuming March 2020 valuations, which is in line with its medium-term target. Following the acquisition, Tritax EuroBox is now fully invested.
Nick Preston, fund manager of Tritax EuroBox, commented: ‘Before the Covid-19 pandemic struck we had identified the structural changes in the European logistics market, with growing online retailing and supply chain optimisation, leading to increased demand for the best located logistics properties. The pandemic has accelerated these trends and further enhanced the prospects for the sector. We remain confident that these structural tailwinds, combined with our high-quality portfolio and our ability to unlock value from it, will help ensure that we will continue to deliver shareholder value.’
Kim Cornille, LCP’s development director in Belgium, commented 'The location, build quality and environmental initiatives we have put in place have, in this instance, appealed to both occupier and investor. We are delighted to have agreed a deal with Tritax Eurobox and are excited to assist in the leasing of Unit 2 as part of our role as Asset Manager.'