Tritax EuroBox buys logistics property in Belgium for €31.2m

Tritax EuroBox buys logistics property in Belgium for €31.2m

Tritax EuroBox plc has areed to acquire a newly buillt logistics property in Belgium from Logistics Capital Partners (LCP) for €31.2 million.

The acquisition price reflects a net initial yield of 4.8% based on the income from the in-place lease and the rental guarantee.

This is the company’s thirteenth asset, a newly built 34,125 sqm logistics property comprising two units (one of 18,140 sqm and the other 15,985 sqm), located in the attractive logistics market of Nivelles, south of Brussels in Belgium.

The larger unit is let to Medi-Market Group SA, a Belgian omni-channel pharmacy retailer on a new nine-year lease. The rent is subject to annual indexation. The second unit is currently vacant and has a 12-month rental guarantee.

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”The Belgian market is currently characterised by a lack of supply of high-quality logistics space with vacancy rates at historic lows of around 1% of total stock,” said in the statement.

”We are delighted to acquire our thirteenth asset which meets all of our stringent investment criteria as well as offering additional asset management upside through the leasing of the second unit. Following this acquisition, we have achieved the leverage target and are continuing to deliver on our investment goals set out at our IPO,” said Nick Preston, Fund Manager of Tritax EuroBox.

Before the Covid-19 pandemic struck we had identified the structural changes in the European logistics market, with growing online retailing and supply chain optimisation, leading to increased demand for the best located logistics properties.  The pandemic has accelerated these trends and further enhanced the prospects for the sector. We remain confident that these structural tailwinds, combined with our high-quality portfolio and our ability to unlock value from it, will help ensure that we will continue to deliver shareholder value,” he added.