TIDMEBOX TIDMBOXE

RNS Number : 1797Z

Tritax EuroBox PLC

12 May 2023

New lease agreed on recently completed 36,000 sqm high-quality warehouse in Dormagen, Germany

Tritax EuroBox plc (the "Company"; tickers: EBOX (Sterling), BOXE (Euro)), which invests in Continental European logistics real estate assets, has agreed a new 10-year green lease to a leading logistics company at the Company's recently completed property in Dormagen, a prime logistics location in the Düsseldorf region of Germany.

Summary

   --    36,000 sqm sustainable building, which will be let in its entirety 
   --    Constructed by Dietz AG, a preferred developer-partner of the Company 
   --    10-year lease, with 100% CPI indexation, reviewed annually

-- The letting is 17.8% above the rental guarantee level, increasing the annualised rental income by EUR0.5m

-- Agreed with a leading logistics company, with a broad range of capabilities including ecommerce expertise, reverse logistics and manufacturing support

-- Green lease clauses agreed with the customer to use the building in a sustainable way along with an obligation to share resource usage data. The Company is now entering discussions with the new customer for a substantial solar scheme

Detail

This speculative forward funding was acquired by the Company in March 2022, with the development reaching completion at the end of March 2023. The property has a gross internal area of 36,000 sqm and significant external space. The letting was signed within five weeks of practical completion.

The customer is a world leader in providing cutting-edge logistics solutions for multinational companies and blue-chip market leaders. Securing this letting with a high-quality customer, ahead of the expiry of the rental guarantee, further demonstrates the strength of our properties and locations.

Sustainability

The project was a brownfield regeneration of a former concrete block factory, which had been vacant since 2006. The property is sustainable, targeting a DGNB Gold Certification and affording the opportunity to coordinate a substantial PV project with the new occupier.

As well as improving the urban environment and providing new employment opportunities, the building specification is of a high ESG standard to achieve good energy performance in line with German regulations. Further, we have collaborated with the customer to include green clauses in the lease agreement to ensure a commitment to use the building in a sustainable way, sharing data on energy, water consumption, waste management and recycling.

Management commentary

Alina Iorgulescu, Investment Director of Tritax EuroBox plc, commented:

"This letting further enhances the resilience of our portfolio and demonstrates the strength of our strategy of buying high-quality sustainable assets in prime logistics locations and securing long leases with high-calibre customers. The agreement showcases the successful delivery of an excellent property, which was let immediately above the underwritten level, reducing the risk within the portfolio, and enhancing returns. "

Further information

Tritax EuroBox plc

+44 (0) 20 8051 5070

Phil Redding - CEO

Mehdi Bourassi - CFO

Charles Chalkly / Ian Brown - Investor Relations

Kekst CNC (Media enquiries)

Neil Maitland / Tom Climie

+44 (0) 7971 578 507 / +44 (0) 7760 160 248

tritax@kekstcnc.com

Notes:

Further information on the Company is available at: tritaxeurobox.co.uk

The Company's LEI is: 213800HK59N7H979QU33.

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END

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May 12, 2023 02:00 ET (06:00 GMT)

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