Aberdeen Standard Eur Lgstc Inc PLC Acquisition of New Warehouse in Warsaw (6891O)
October 03 2019 - 6:39AM
UK Regulatory
TIDMASLI
RNS Number : 6891O
Aberdeen Standard Eur Lgstc Inc PLC
03 October 2019
New acquisition
Aberdeen Standard European Logistics Income PLC (LSE: ASLI) (the
"Company")
LEI: 213800I9IYIKKNRT3G50
3 October 2019
PURCHASE AGREEMENT SIGNED FOR THE ACQUISITION OF A NEW WAREHOUSE
IN WARSAW FOR EUR27.5 MILLION
The Board is pleased to announce that the Company has exchanged
contracts to acquire a newly built fully income producing logistics
warehouse in Warsaw, Poland, for a purchase price of EUR27.5
million providing a net initial yield of 5.64%. The agreement is
with developer Panattoni Development Europe and Marvipol Logistics,
which are specialised developers of logistics projects. Contracts
were exchanged after a lengthy due diligence process and after
construction of the site was completed. Completion of the
acquisition is currently scheduled for later in the month and will,
once completed, represent the deployment of over half of the amount
raised under the fundraising that took place in July.
The warehouse is located in an established logistics location in
Poland along the A2 motorway which is one of the arterial routes
for Warsaw and benefits from proximity to the city. There are also
two international airports within easy access. All of these factors
make this an ideal location for urban logistics and e-commerce
related delivery. The logistics centre comprises two warehouses
totalling 24,626 square metres, including 1,959 square metres of
office space, with one building containing cross-docking
facilities. The site is predominantly pre-let with an average lease
length of 8 years. The main tenant is DHL, a division of the German
logistics company, Deutsche Post DHL, the world's largest logistics
company operating globally, particularly in sea and air mail. Other
tenants include ICS Polska (specialising in industrial cleaning
products) and Spedimex (a logistics company). Advanced negotiations
are underway regarding the lease of the remaining space, currently
covered by a 5 year rental guarantee. The Investment Manager is
expecting these to conclude favourably shortly.
Outlook - future acquisitions and gearing
This acquisition brings the Company's portfolio to twelve
quality logistics assets spread across five European countries and
occupied by tenants with long indexed leases. Our intention remains
to deploy all the capital raised in July as quickly as possible,
but without compromising the focus on asset selection, price and
tenant quality in building the portfolio. The Investment Manager is
currently in advanced due diligence on another new warehouse in the
Netherlands which would, if successful, mean that all the funds
raised in July would be fully deployed and that gearing would be
close to the target level of 35% by the end of the calendar
year.
The Board and the Investment Manager continue to believe that
the European market offers attractive opportunities because the
logistics market is both sizeable and growing. The sector continues
to benefit from the rapid take-up of logistics facilities, largely
helped by the growth in e-commerce, and the long inflation-linked
leases that quality tenants are prepared to sign up to in many
parts of Europe. As we have previously stated, it is this strategy
which is focused on investments on the Continent with attractive
pricing, indexation of leases as standard and lower financing costs
that underpins our investment policy.
For further information:
Aberdeen Standard Fund Managers Limited
0207 463 6000
William Hemmings
Gary Jones
Luke Mason
Investec Bank plc
020 7597 4000
David Yovichic
Denis Flanagan
Notes to Editors
Aberdeen Standard European Logistics Income PLC is a UK
investment trust with a premium listing on the Main Market of the
London Stock Exchange. The Company invests in European logistics
real estate to achieve its objective of providing its shareholders
with a regular and attractive level of income return together with
the potential for long term income and capital growth. The Company
aims to invest in a portfolio of assets diversified by both
geography and tenant throughout Europe, predominantly targeting
well-located assets at established distribution hubs and within
population centres.
The Company launched on 15 December 2017 raising gross proceeds
of GBP187.5 million with a further GBP46.4 million raised by way of
a placing, open offer and open for subscription in July this year.
Portfolio management services are undertaken by Aberdeen Standard
Investments Ireland Limited, part of the Aberdeen Standard
Investments group of companies.
The Aberdeen Standard Investments Real Estate team's extensive
regional presence (with 25 offices in 14 countries across Europe)
gives it very strong local insight and market knowledge with access
to a wide variety of investment opportunities, both on and off
market. As investment manager, it is therefore well positioned to
identify assets suitable for the Company's portfolio with
transaction managers on the ground able to source and complete
deals.
Further information on Aberdeen Standard European Logistics
Income PLC is available at www.eurologisticsincome.co.uk
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END
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