TIDMEBOX TIDMBOXE
RNS Number : 5946G
Tritax EuroBox PLC
07 November 2018
7 November 2018
Tritax EuroBox plc
(the "Company")
ACQUISITION OF LOGISTICS ASSET NEAR BOCHUM IN RHINE-RUHR REGION
OF GERMANY
FOR EUR35.7 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 prime,
modern logistics warehouse asset near Bochum, in the Rhine-Ruhr
region of Germany, a core, established logistics location. The
total consideration payable by the Company is EUR35.7 million for
the corporate acquisition (excluding purchaser's costs), reflecting
a net initial yield of 4.9%.
This new, well-specified unit, purpose-built in January 2018, is
in an established logistics location with excellent road, motorway
and railway connectivity. Located in Bochum, in the heart of the
Rhine-Ruhr region of Germany, with direct access to the A40 and A43
motorways, the area benefits from excellent logistics links and
continues to see high occupier demand, a low vacancy rate and
limited availability both of logistics buildings and land for
development. The Rhine-Ruhr region is the third-largest in Europe,
with a population of 11.3 million. Given the region's dense
population and high incomes, consumption and e-commerce are driving
demand for warehouses and logistics facilities.
The property has a gross internal area of 36,400 sqm and is
divided into four units, with an eaves height of 12 metres with
significant yard area and parking. The site cover is approximately
58%.
This investment is fully income producing and offers attractive
scope for value and income enhancing opportunities.
One unit is leased to SVH Handels GmbH ("SVH Handels") for a
fixed term of seven years, with 6.4 years unexpired. SVH Handels is
a subsidiary of the Würth Group, a worldwide wholesaler of 125,000
products for the trade and craft industry, with annual turnover of
over EUR12 billion.
A second unit is leased to WM Group GmbH ("WM Group") for a
fixed term of five years, with 4.6 years unexpired. WM Group, a
logistics service provider, is part of LB GmbH, which employs over
800 people across nine locations in Germany, Austria and the
UK.
The remaining vacant space, with a combined gross internal area
of 17,664 sqm, currently benefits from a five-year rental guarantee
to the Company provided by Dietz AG ("Dietz"), the Company's asset
manager in Germany. Noting the sought-after logistics location,
which benefits from strong occupier demand and constrained supply,
the Manager will be seeking to let these two units in the near
term.
This acquisition is the second for the Company arising from its
relationship with Dietz. Dietz has retained a small interest in the
acquired asset.
Nick Preston, Fund Manager of Tritax EuroBox, commented:
"We are delighted with this asset, our sixth investment for
Tritax EuroBox plc since IPO in July 2018, bringing our total
amount invested to just over EUR476 million. This off-market
acquisition, developed by Dietz AG, of a new, purpose-built asset
is at an attractive yield which also offers opportunities to add
value. The asset is in a prime logistics location in the Rhine-Ruhr
region of Germany, the largest population centre in the country and
an area which benefits from excellent transport connectivity and
strong supply/demand fundamentals."
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's Manager, Tritax Management LLP, has assembled a
full-service European logistics asset management capability
including specialist "on the ground" asset and property managers
with strong market standings in the Continental European logistics
sector. The appointed asset managers Logistics Capital Partners
("LCP") and Dietz AG ("Dietz") are logistics specialists and offer
the Company exposure to high quality asset management expertise and
access to their respective development pipelines, providing
acquisition opportunities across 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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