TIDMEBOX TIDMBOXE
RNS Number : 7784D
Tritax EuroBox PLC
11 October 2018
11 October 2018
Tritax EuroBox plc
(the "Company")
ACQUISITION OF REGIONAL DISTRIBUTION CENTRE AT PASSO CORESE,
ROME, ITALY FOR EUR118 MILLION LET TO WORLD LEADING RETAILER
The Board of Tritax EuroBox plc (tickers: EBOX (Sterling), BOXE
(Euro)), which invests in Continental European logistics real
estate assets, is pleased to announce that it has acquired a
regional fulfilment centre in Passo Corese, Rome, let to a
financially robust world leading online retailer. The total
consideration is EUR118 million (excluding purchaser's costs),
reflecting a net initial yield of 5.0%.
This new purpose-built, regional fulfilment centre, a key part
of the tenant's pan-European network, is strategically located in a
prime logistics location 35 km north east of Rome with good access
to the A1 (E45), the principal north-south axis motorway in Italy.
The site benefits from good rail and airport connectivity and forms
part of a new industrial/logistics park.
This high specification logistics facility, purpose-built in
August 2017, has a gross internal area of c.158,000 sqm, is built
over three levels with a maximum eaves height of 14 metres and a
site cover of 35%. The building has benefited from significant
capital investment from the tenant.
The property, which is the occupier's only regional fulfilment
centre in southern Italy, is let on a 15-year full repairing and
insuring lease that commenced on 7 August 2017, reflecting an
unexpired lease term of just under 14 years. At the end of the 15
year lease there are two six-year extension options in favour of
the tenant. The majority of the rent is subject to annual
indexation.
Nick Preston, Fund Manager of Tritax EuroBox, commented:
"We are delighted to announce the second investment for Tritax
EuroBox plc, with the acquisition of this regional fulfilment
centre, which provides the Company with 14 years of core foundation
income, let at a market level to a world leading online retail
company.
This purpose-built asset is situated in a prime logistics
location just north of Rome, Italy's largest urban conurbation.
Benefiting from excellent transport connectivity, the property
plays a key role in the occupier's network in Italy and across
Europe and has benefited from significant capital investment.
Central Italy's logistics market continues to see strong and
growing demand from occupiers with limited availability of
large-scale, modern, grade A logistics buildings and development
land. Supply/demand dynamics evident in the Rome/Central Italy
logistics market provide good income growth potential for this
property."
FOR FURTHER INFORMATION, PLEASE CONTACT:
Tritax Group
Nick Preston +44 (0) 20 7290
James Dunlop 1616
Jefferies International Limited
Gary Gould +44 (0) 20 7029
Stuart Klein 8000
Kempen & Co N.V.
Dick Boer +31 (0) 20 348
Thomas ten Hoedt 8500
Newgate Communications (PR Adviser) +44 (0) 20 7680
James Benjamin 6550
Anna Geffert tritax@newgatecomms.com
NOTES:
Tritax EuroBox plc intends to acquire and manage 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 will 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.
LCP is an established pan-European provider of project
development and asset management services for logistics real estate
in European with extensive experience in the investment,
development and occupier sectors of the logistics market.
Dietz is a full service real estate company with a focus on the
German logistics market and has valuable experience covering a wide
range of services including development and asset management and
will cover asset management activities for the Company in
Germany.
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 these targets in deciding whether or not to invest in
the Company and should decide for themselves whether the targets
are reasonable or achievable.
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END
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