Tritax splashes £100m on German logistics
Tritax EuroBox has agreed to acquire land and fund the development of a €117.9m (£100m) scheme in the Rhine-Ruhr region in Germany.
The 710,000 sq ft development is prelet to global logistics service provider Rhenus Warehousing Solutions SE & Co KG, on a 15-year lease. The scheme, which will comprise six purpose-built units, will provide an annual rent of €4.1m and is expected to be completed in February 2023.
Tritax is buying the site through a forward funding development opportunity, acquiring the land initially and then funding the construction of the building under a fixed price contract.
Tritax EuroBox has agreed to acquire land and fund the development of a €117.9m (£100m) scheme in the Rhine-Ruhr region in Germany.
The 710,000 sq ft development is prelet to global logistics service provider Rhenus Warehousing Solutions SE & Co KG, on a 15-year lease. The scheme, which will comprise six purpose-built units, will provide an annual rent of €4.1m and is expected to be completed in February 2023.
Tritax is buying the site through a forward funding development opportunity, acquiring the land initially and then funding the construction of the building under a fixed price contract.
The total cost of the land and development expenditure is capped at €117.9m. From receipt of the building permit expected by February 2022 and during the 12-month construction phase, Tritax said it would receive from the developer an income return equivalent to the agreed net initial yield.
The development cost of €117.9 million, which reflects a net initial yield of 3.5% based on the income from the agreed-upon lease.
Alina Iorgulescu, assistant fund manager at Tritax EuroBox, said: “The Rhine-Ruhr region of Germany is the largest population centre in the country and is an area which benefits from excellent transport connectivity and strong supply/demand fundamentals. This is the tenth German investment in the Tritax EuroBox portfolio, bringing our total amount invested in the country to just over €700m, providing significant critical mass in the most important logistics market in Europe.
“This off-market funding, developed by our long-term development partner Dietz AG, is at an attractive yield which also offers the opportunity to capture the rental growth evident in the prime German logistics market.”
To send feedback, e-mail samantha.mcclary@eg.co.uk or tweet @samanthamcclary or @EGPropertyNews
