Tritax EuroBox PLC Acquisition (9263B)
September 26 2018 - 2:00AM
UK Regulatory
TIDMEBOX TIDMBOXE
RNS Number : 9263B
Tritax EuroBox PLC
26 September 2018
26 September 2018
Tritax EuroBox plc
(the "Company")
ACQUISITION OF THE MANGO GLOBAL DISTRIBUTION CENTRE AT LLIÇÀ
D'AMUNT, BARCELONA, SPAIN FOR EUR150 MILLION
The Board of Tritax EuroBox plc (tickers: EBOX (Sterling), BOXE
(Euro)), which invests in Continental European logistics real
estate assets, is pleased to announce that it has acquired a global
distribution centre at Lliçà d'Amunt, Barcelona let to Punto Fa
S.L., trading as MANGO ("Mango"), one of the world's leading
fashion retailers. The total consideration is EUR150 million
(excluding purchaser's costs), reflecting a net initial yield of
5.0% on the corporate acquisition.
This state-of-the-art global distribution centre which
distributes to Mango's worldwide store network is located 25 km
north of Barcelona and is directly accessible from the European
motorway network. Barcelona's port and airport are within a
25-minute drive.
This high specification logistics facility, purpose-built in
2016, has a gross internal area of 186,138 sqm, a maximum eaves
height of 40 metres and multi-level mezzanines. The building has
benefited from significant capital investment incorporating a high
level of automation and racking.
The property is let on a 30 year full repairing and insuring
lease that commenced on 20 December 2016, reflecting an unexpired
lease term of over 18 years to the first tenant break option in
2036, with further break options in 2039 and 2042. The rent is
subject to annual upward only indexation. This off-market
investment also benefits from two options to extend the property on
an adjacent plot of land. If implemented, these extensions would
increase the size of the asset by over 55,000 sqm.
Nick Preston, Fund Manager of Tritax EuroBox, commented:
"We are delighted to announce the first investment for Tritax
EuroBox plc and to be investing in this prime, state-of-the-art,
global distribution centre let on a long lease to Mango, a leading
global fashion retailer. This property plays a critical role in
Mango's global supply chain and has benefited from significant
capital investment with high levels of automation.
Barcelona is Spain's second largest city and its logistics
market is one of the strongest in Europe, with deep tenant demand
and a very constrained supply of available logistics buildings and
development land, especially for logistics assets of this size. We
believe that the supply/demand dynamics evident in the Barcelona
logistics market provide good income growth potential for this
property."
FOR FURTHER INFORMATION, PLEASE CONTACT:
Tritax Group
Nick Preston +44 (0) 20 7290
James Dunlop 1616
Jefferies International Limited
Gary Gould +44 (0) 20 7029
Stuart Klein 8000
Kempen & Co N.V.
Dick Boer +31 (0) 20 348
Thomas ten Hoedt 8500
Newgate Communications (PR Adviser) +44 (0) 20 7680
James Benjamin 6550
Anna Geffert tritax@newgatecomms.com
NOTES:
Tritax EuroBox plc intends to acquire and manage a
well-diversified portfolio of well-located Continental European
logistics real estate assets, that are expected to deliver an
attractive capital return and secure income to shareholders. These
assets will fulfil key roles in the logistics and distribution
supply-chain focused on the most established logistics markets and
on the major population centres across core Continental European
countries.
Occupier demand for Continental European logistics assets is in
the midst of a major long-term structural change principally driven
by the growth of e-commerce. This is evidenced by technological
advancements, increased automation and supply-chain optimisation,
set against a backdrop of resurgent economic growth across much of
Continental Europe.
The Company is targeting, on a fully invested and geared basis,
an initial Ordinary Share dividend yield of 4.75% p.a.(1) , which
is expected to increase progressively through regular indexation
events inherent in underlying lease agreements, and a total return
on the Ordinary Shares of 9.0% p.a.(1) over the medium-term. The
Company intends to pay dividends on a quarterly basis with
shareholders able to receive dividends in Sterling or Euro.
Further information on Tritax EuroBox plc is available at
www.tritaxeurobox.co.uk
1. Euro denominated returns, by reference to IPO issue price.
These are targets only and not profit forecasts. There can be no
assurances that these targets will be met and they should not be
taken as indications of the Company's expected or actual future
results. Accordingly, potential investors should not place any
reliance on these targets in deciding whether or not to invest in
the Company and should decide for themselves whether the targets
are reasonable or achievable.
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END
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