TIDMEBOX TIDMBOXE
RNS Number : 8495B
Tritax EuroBox PLC
16 February 2022
16 February 2022
Tritax EuroBox plc forward funds Logistics Capital Partners'
development of a prime logistics asset in the Netherlands, pre-let
to top four global food retailer
Demonstrates further progress in strategy to invest in prime
logistics locations in Western Europe
Tritax EuroBox plc ("Tritax EuroBox" or the "Company") which
invests in high-quality, prime logistics real estate, strategically
located across continental Europe, announces that it has
conditionally agreed the acquisition of a EUR144.26 million prime
logistics asset in Roosendaal, the Netherlands, from Logistics
Capital Partners ("LCP"), one of the Company's main development and
asset management partners. The asset is pre-let to a top four
global discount supermarket retail group.
A modern and well located prime logistics asset
Roosendaal, strategically situated in the south east of the
Netherlands, was ranked the third best Logistics Hotspot 2019 out
of the 28 regions in the Netherlands (Source: Logistiek NL). This
optimal location provides rapid connections to the ports of
Rotterdam, Antwerp and Amsterdam. The area is characterised by
strong tenant demand and low supply of new buildings.
Once complete, the asset will comprise a single property,
divided into three units, built in three phases. It will have a
total net rentable area of approximately 113,179 sqm built on a
total site area of approximately 210,488 sqm.
Delivering attractive returns to shareholders, with further
upside potential
This transaction is structured as a forward funding development
opportunity, where the Company buys the land and funds the
construction of the building under a fixed price contract.
-- The total cost of the land and development expenditure is
EUR144.26 million and reflects a net initial yield of 3.5%, after
purchase costs and non-recoverable expenditure.
o All three units are already pre-let to a top four global
discount supermarket retail group, on a single lease, expiring in
November 2027.
o The lease will generate approximately EUR5.1 million annually
on completion of all three phases and is initially annually indexed
to Dutch CPI.
o The lease incorporates a rent review and option to extend for
a further five years at the end of the sixth year of the lease
term.
o This review allows the rent to increase to the prevailing open
market level, with a cap of 10% above the existing (indexed) rent
at that time.
LCP completed the construction of the first phase in December
2021, with completion of the second and third phases expected by 1
December 2022 and 1 April 2023, respectively. As part of the
proposal, during the construction phase, LCP will pay the Company
income equivalent to the expected rent, until practical
completion.
Combined with strong ESG credentials
Strong ESG credentials are at the forefront of the asset's
design and build, meeting several of the Company's sustainability
objectives through a BREEAM Very Good certification and
incorporating a number of sustainability initiatives, providing
social and environmental benefits for staff and the locality.
Alina Iorgulescu, Assistant Fund Manager of Tritax EuroBox,
commented:
"We are delighted to announce further deployment into a prime
European logistics location, following the Swedish acquisition
announced on 17 January. Today's acquisition cements our commitment
to acquire top quality assets in prime locations across Europe, all
built to high ESG standards and accommodating leading international
occupiers, whilst building our relationship with our partner
Logistics Capital Partners.
"By negotiating a market rent review within the lease, we have
an opportunity to capture the strong rental growth we are seeing in
the Netherlands - as well as in other markets in Europe - where
demand for high quality, modern logistics assets outstrips supply,
which remains constrained, due to limited land availability in the
right locations. We expect this rental growth to continue during
the current lease term of the asset as well as creating strong
income and capital growth potential and sustainable value for
shareholders."
Related party aspects of this proposed acquisition
The Company is acquiring the asset from LCP. As LCP is
considered as a related party to the Company under the Listing
Rules, the acquisition of the asset is subject to shareholder
approval. A circular containing further information about the
acquisition and a notice convening a General Meeting of the Company
at which shareholders will be asked to vote in favour of a
resolution to approve the proposed transaction will be posted to
shareholders as soon as practicable.
Further details of the acquisition, including the key commercial
terms, are set out in the appendix to this announcement.
For further information please contact:
Tritax Group
+44 (0) 20 8051 5070
Nick Preston
Mehdi Bourassi
Alina Iorgulescu
Maitland/AMO (Media enquiries)
James Benjamin
+44 (0) 7747 113 930
tritax-maitland@maitland.co.uk
The Company's LEI is: 213800HK59N7H979QU33.
Notes:
Tritax EuroBox plc (ticker: EBOX (Sterling) and BOXE (Euro),
invests in 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.
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.
Further information on Tritax EuroBox plc is available at
www.tritaxeurobox.co.uk
APPIX
Background to and reasons for the Roosendaal Proposal
The acquisition of the Roosendaal asset (the "Roosendaal
Proposal") forms part of the deployment of the proceeds of the
capital recently raised by the Company following its issue of new
ordinary shares in September 2021.
The Company has entered into a conditional sale agreement with
LCP Holdco Belgium BV ("LCP HoldCo") and LCP NL DC2 BV, a
wholly-owned subsidiary of LCP HoldCo (the "LCP SPV"), pursuant to
which the Company will acquire the asset from the LCP SPV (the
"Roosendaal Proposal").
The acquisition is structured as a corporate transaction, with
the Company acquiring from LCP HoldCo all the issued and
outstanding shares in the LCP SPV, being the entity holding the
Roosendaal asset for a total consideration, including future
construction costs of approximately EUR144.26 million.
The Roosendaal asset, held freehold, has a total net rentable
area of approximately 113,179 square metres built on a total site
area of approximately 210,488 square metres and comprises one
building divided into three purpose-built logistics units with
parking spaces and truck spaces.
The first phase completed in December 2021, whilst it is
expected the second and third phases will be delivered by 1
December 2022 and 1 April 2023, respectively.
All phases of the development are pre-let pursuant to a single
lease agreement with a top four global food retail group expiring
in November 2027. The lease will generate approximately EUR5.1
million annually on completion of all three phases.
The Company and Tritax Management LLP believe that the
Roosendaal Proposal represents good value for the Company and will
help the Company to achieve its near-term investment objectives. In
addition to the investment returns expected to be generated from
the Roosendaal Proposal, it will also represent the Company's
second acquisition in the Netherlands, helping the Company build
scale and spread costs over a wider asset base. This acquisition
will also provide wider diversification to spread risk across the
portfolio.
Jones Lang LaSalle Ltd ( " JLL " ) has independently valued the
completed Roosendaal asset at a level, assuming completion of the
asset, which is above the purchase price.
Principal terms of the Roosendaal Proposal
-- On 15 February 2022, the Company entered into a conditional
share purchase agreement with LCP HoldCo and the LCP SPV, pursuant
to which the Company will acquire the Roosendaal asset from the LCP
SPV (the " Roosendal Sale Agreement " ).
-- The total consideration to be paid by the Company for the
interest in the LCP SPV and the development of the Roosendaal
asset, including the development fees payable to the LCP SPV and
all other fees and costs, is EUR144.26 million (approximately
GBP121.06 million), reflecting a net initial yield of 3.5 per cent
after purchase costs and non-recoverable expenditure.
-- As part of the Roosendaal Proposal, LCP Services (UK) Limited
will pay the Company income which will amount to the difference
between the rent being paid by the tenant and the total rent of
approximately EUR5.01m per annum until practical completion.
-- Bouwbedrijf Vrolijk B.V. (the " Contractor") and the LCP SPV
are in the process of concluding a construction agreement pursuant
to which the Contractor is obliged to construct the final two
phases of the Roosendaal asset.
-- On 15 February 2022, LCP and the LCP SPV entered into a
development management agreement (the " Roosendaal Development
Management Agreement " ) pursuant to which LCP was appointed as
construction manager to procure the construction of the Roosendaal
asset by the Contractor. The Roosendaal Development Management
Agreement contains certain undertakings and obligations customary
for an agreement for construction services.
-- The gross property assets of the LCP SPV, which are the
subject of the transaction, total approximately EUR102.03 million
as at 14 February 2022. Other net assets and liabilities amount to
a net liability of approximately EUR6.78 million. Construction
costs to reach completion will be approximately EUR42.21
million.
-- The Roosendaal Sale Agreement is conditional on the approval
of shareholders at the General Meeting.
Ends
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.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
MSCFZGMZVVFGZZG
(END) Dow Jones Newswires
February 16, 2022 02:00 ET (07:00 GMT)
Tritax Eurobox (LSE:EBOX)
Historical Stock Chart
From Jun 2024 to Jul 2024
Tritax Eurobox (LSE:EBOX)
Historical Stock Chart
From Jul 2023 to Jul 2024