TIDMEBOX TIDMBOXE
RNS Number : 8821U
Tritax EuroBox PLC
27 November 2019
27 November 2019
Tritax EuroBox plc
(the "Company")
AGREEMENT TO FUND 88,000 SQM EXTENSION OF MANGO GLOBAL
DISTRIBUTION CENTRE AT LLIÇÀ D'AMUNT, BARCELONA, SPAIN
The Board of Tritax EuroBox plc (tickers: EBOX (Sterling), BOXE
(Euro)), which invests in Continental European logistics real
estate assets, announces that it has agreed to fund an 88,000 sqm
extension to its 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.
This state-of-the-art global distribution centre, which
distributes to Mango's worldwide store network, was acquired
off-market by the Company in September 2018 for a total
consideration of EUR150 million (excluding purchaser's costs),
reflecting a net initial yield of 5.0%, with the benefit of an
adjacent plot of zoned land providing scope to extend the
property.
The Company will finance the construction of the extension at an
attractive yield on cost, for an estimated capital commitment of
EUR30.5 million. Construction is anticipated to start by Autumn
2021, once all necessary permissions have been obtained and in line
with Mango's strategic objectives and development programme.
The 88,000 sqm extension will accommodate the continued growth
of Mango's global e-commerce operations, combining the in-store and
online fulfilment functions, increasing this facility's total gross
internal area to over 274,000 sqm.
Upon practical completion, targeted for Spring 2023, the
extension will be incorporated into the existing full repairing and
insuring lease that commenced in December 2016 on a 30-year term,
reflecting an unexpired lease term on completion of the extension
of approximately 14 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.
As part of the extension, the Company and Mango have agreed to
work together to optimise and reduce energy consumption within both
the existing building and the extension in order to improve the
overall environmental performance of the property.
This high specification logistics facility, purpose-built in
2016, is strategically located 25 km north of Barcelona, and
benefits from excellent connectivity to Europe's motorway and rail
networks. Barcelona's port and airport are within a 40-minute
drive.
Nick Preston, Fund Manager of Tritax EuroBox, commented:
"This key asset management initiative, at an attractive yield on
cost, underlines the Company's ability to source acquisitions with
embedded upside potential. This extension will enhance both the
rental income generated and also the capital value of the
investment, supporting the Company's delivery of secure long-term
income to shareholders and an attractive total return.
By working proactively with Mango, a valued tenant partner, we
are delighted to fund this extension opportunity to accommodate the
evolving requirements of one of the world's leading fashion
retailers, helping to future-proof this high specification asset
that plays an integral role in Mango's global supply chain.
This very significant extension to the property will allow Mango
to continue to grow its successful in- store and online business,
demonstrating its deep commitment to the location as well as
reflecting the value of this site."
FOR FURTHER INFORMATION, PLEASE CONTACT:
Tritax Group +44 (0) 20 7290 1616
Nick Preston
James Dunlop
Jefferies International Limited +44 (0) 20 7029 8000
Gary Gould
Stuart Klein
Kempen & Co N.V. +31 (0) 20 348 8500
Dick Boer
Thomas ten Hoedt
Maitland/AMO (Communications
Adviser) +44 (0) 20 7379 5151
James Benjamin tritax-maitland@maitland.co.uk
The Company's LEI is: 213800HK59N7H979QU33.
NOTES:
Tritax EuroBox plc 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,
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.
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END
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