TIDMEBOX TIDMBOXE
RNS Number : 3703T
Tritax EuroBox PLC
20 March 2019
20 March 2019
Tritax EuroBox plc
(the "Company")
TWO NEW LEASES AGREED WITH HIGH QUALITY TENANTS
The Board of Tritax EuroBox plc (tickers: EBOX (Sterling), BOXE
(Euro)), which invests in Continental European logistics real
estate, is pleased to announce the completion of two new lettings
with high quality tenant covenants: a five-year lease of a vacant
unit at the Company's prime logistics property near Bochum, in the
Rhine-Ruhr region of Germany and a nine-year lease of a vacant unit
at the Company's property in Bornem, a prime logistics location
near Antwerp in Belgium.
These new leases increase the contracted annual rental income of
the Company's portfolio whilst further diversifying the portfolio
by tenant covenant. The speed of securing these new leases
underlines the strength of these prime logistics locations, the
quality of the properties and the benefits of the Company's on the
ground presence through its market-leading asset managers with deep
local knowledge.
Bochum, in the Rhine-Ruhr region of Germany
This new, well-specified property with gross total internal area
of 36,400 sqm is in the centre of Germany's industrial heartland
and historic headquarters of steel, mining and automobile
production. It benefits from excellent motorway and railway
connectivity. With a population of c.11 million, the Rhine-Ruhr
region is the third largest metroplex in Europe after London and
Paris.
The property was acquired by the Company in November 2018 with a
five-year rental guarantee from Dietz AG for the two vacant units
with a combined gross internal area of 17,664 sqm. The letting of
this first vacant unit of 9,337 sqm, secured within three months of
acquisition, demonstrates the strong occupier demand and
constrained supply in this highly sought-after logistics
location.
The tenant, Gruber Logistics GmbH ("Gruber Logistics"), is an
established transportation and logistics service provider in the
German market and is a subsidiary of Gruber Logistics SpA, a family
owned business founded in 1936 with annual turnover of c.EUR318
million in 2017. The transportation of heavy goods represents the
core business of the Gruber Logistics SpA group, which is present
in nine countries across Europe.
The lease has been agreed for a five-year term commencing on 1
April 2019. The initial rent is in line with the level of the
rental guarantee from Dietz AG and is subject to annual CPI uplifts
reflecting 100% of the German Consumer Price Index with a hurdle of
2%.
Gruber Logistics will occupy the property alongside the two
existing tenants, SVH Handels GmbH and WM Group GmbH. Advanced
discussions with potential occupiers for the one unit still
available to let on the property are ongoing.
Bornem, near Antwerp in Belgium
The property was acquired by the Company as part of a portfolio
in October 2018. Bornem is located in the prime logistics corridor
in Belgium, between Antwerp and Brussels. The property has an
overall gross internal area of c.31,000 sqm and is strategically
located close to the A12 motorway, which links Brussels and
Antwerp, delivering excellent north/south motorway access. The
property benefits from good port and airport connectivity, with the
Port of Antwerp c.35km north and Brussels Airport c.35km to the
south.
The Company secured the letting of the vacant unit within
approximately four months from acquisition, demonstrating the
strong occupier demand and limited availability of logistics
buildings in the region and the benefits of the Company's local
presence through its partnership with Leuven-based Logistics
Capital Partners. The unit, which has a gross internal area of
16,835 sqm had been vacant for over 18 months prior to the
Company's acquisition of the property.
The tenant, Belgische Distributiedienst NV ("BD NV"), is part of
the BD myShopi NV group, who will act as guarantor to the lease. BD
NV is a well-established omni-channel activation platform in
Belgium with more than 50 years' experience in delivering segmented
marketing solutions, based on geographic and socio-demographic
parameters, to its customers across Belgium.
The lease has been agreed for a nine-year term from 1 July 2019
at an initial annual headline rent equal to 30% above the level of
the rental guarantee secured at acquisition. The new rent is
indexed from 1 July 2019 and will compound annually at 100% of the
Belgian Health Index. Works are ongoing to facilitate the tenant's
extensive fit out plans in advance of the lease commencement
date.
BD NV will occupy the property alongside existing tenant
Alcon-Couvreur NV (a world leader in eye care founded by Novartis,
one of the world's largest pharmaceutical companies), and
Pharma-Distri Center NV (an independent logistics business, which
stores, packs and distributes pharmaceutical products across Europe
for a range of leading pharmaceutical clients). Following the
completion of this new letting, the property will be fully let.
Nick Preston, Fund Manager of Tritax EuroBox, commented:
"We are delighted that we have been able to lease these units so
swiftly following acquisition, and on terms exceeding our
expectations. These new lettings demonstrate not only the strength
of these prime logistics locations, but also the benefits of our
strategy of working closely with our market leading asset managers,
Dietz and LCP. Their deep local knowledge, when coupled with our
in-house expertise, helps to ensure we move quickly to find
occupiers and deliver on the Company's strategy. We look forward to
a long and productive relationship with our new tenant partners, BD
myShopi NV in Bornem and Gruber Logistics at Bochum."
FOR FURTHER INFORMATION, PLEASE CONTACT:
Tritax Group
Nick Preston
James Dunlop +44 (0) 20 7290 1616
Jefferies International Limited
Gary Gould
Stuart Klein +44 (0) 20 7029 8000
Kempen & Co N.V.
Dick Boer
Thomas ten Hoedt +31 (0) 20 348 8500
Maitland/AMO (Communications Adviser) +44 (0) 20 7379 5151
James Benjamin tritax-maitland@maitland.co.uk
NOTES:
Tritax EuroBox plc invests and manages 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 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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
AGRDDGDXGGBBGCC
(END) Dow Jones Newswires
March 20, 2019 03:01 ET (07:01 GMT)
Tritax Eurobox (LSE:EBOX)
Historical Stock Chart
From Aug 2024 to Sep 2024
Tritax Eurobox (LSE:EBOX)
Historical Stock Chart
From Sep 2023 to Sep 2024