TIDMEBOX TIDMBOXE
RNS Number : 6585B
Tritax EuroBox PLC
03 February 2020
3 February 2020
Tritax EuroBox plc
(the "Company")
ACQUISITION OF TWO MODERN LOGISTICS UNITS AND DEVELOPMENT LAND
IN A PRIME LOCATION NEAR LODZ, IN CENTRAL POLAND
FOR EUR51.8 MILLION
The Board of Tritax EuroBox plc (tickers: EBOX (Sterling), BOXE
(Euro)), which invests in Continental European logistics real
estate assets, announces it has acquired two recently developed
prime logistics properties and development land, positioned in the
core logistics location of Strykow, near Lodz in Central Poland for
EUR51.8 million (Phase I) with the potential to invest a further
EUR15.0 million developing the adjacent Phase II land. The
corporate acquisition reflects a net initial yield of 6.1% (net of
acquisition costs to the Company) and has potential to add value
through the letting of vacant units and development of the
land.
Following the acquisition of the Castorama logistics facility in
April last year, this off-market investment increases Tritax
EuroBox's presence in Strykow, which is one of Poland's largest
logistics markets and a key logistics hub in the Central and
Eastern European region. Strykow is close to the A1/A2 road
intersection allowing access to Poland's main arterial roads. The
location has seen rapid take up in the last five years by numerous
blue-chip tenants. This asset offers scope for income growth off a
low base and value enhancement through identified asset management
opportunities.
The two modern buildings, completed in 2018, have gross internal
areas ("GIA") of 43,218 sqm and 34,442 sqm (totalling 77,660 sqm).
The properties, designed and constructed to the latest modern
logistics specification, are well suited to meet occupier demands,
with minimum eaves heights of 10 metres along with significant yard
areas.
Phase I
55,447 sqm is let to three tenants while 22,213 sqm, which is
currently vacant, benefits from a two-year vendor's rental
guarantee. This reflects a weighted average unexpired lease term of
5.0 years to expiry (4.5 years to break). All rents are subject to
annual upwards only indexation to 100% of local CPI.
Building 1: 43,218 sqm is let to Arvato Polska sp z.o.o
("Arvato") until January 2025 with tenant break option in January
2024. Arvato is an international logistics service company, part of
Bertelsmann Group, the global media, services and education group
which generated revenues of EUR17.7 billion in its 2018 financial
year. Arvato provides international, third party logistics services
for retailer H&M from this building.
Building 2: 8,942 sqm is let until July 2029 to Stalatube sp
z.o.o, a leading provider of stainless-steel solutions. A further
3,287 sqm is let to the Polish operations of German packaging
company, Tillmann Wellpappe, until July 2029 with a parent company
guarantee.
Phase II
Phase II of the asset is an adjacent plot of land of
approximately 45,000 sqm suitable for constructing a building with
a GIA of approximately 22,400 sqm. The Company has entered into a
funding agreement with the Vendor to bring forward development of
this phase on letting, increasing the Company's investment in the
asset by approximately EUR15 million.
Marketing of the Phase I vacancy and Phase II development is
being carried out by the vendor, European Logistics Investment B.V.
("ELI"), and their joint venture development partner, Panattoni,
who have wide reach in the Polish market.
Nick Preston, Fund Manager of Tritax EuroBox, commented:
"We are delighted to announce the twelfth investment for Tritax
EuroBox plc, bringing the total amount invested to over EUR784.1
million and the Company's LTV to 43%, close to the target level of
45%. The off-market acquisition of these newly developed, high
specification assets situated in a prime logistics location at
Strykow in Poland, is at an attractive and accretive yield.
We are confident of delivering the identified asset management
plan that is expected to provide further value from these assets,
capitalising on this established logistics location with
strengthening supply/demand fundamentals, excellent transport links
and a robust labour market. Together, this will further support the
Company's delivery of secure long-term income to shareholders and
an attractive total return."
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 +31 (0) 20 348 8500
Dick Boer
Thomas ten Hoedt
Akur Limited +44 (0)20 7493 3631
Anthony Richardson
Tom Frost
Siobhan Sergeant
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'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 and
Dietz AG 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 the target in deciding whether or not to invest in the
Company and should not assume that the Company will make any
distributions at all and should decide themselves whether or not
the target is reasonable or achievable.
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END
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