Tritax Eurobox acquires Nivelles logistics site from LCP

Tim Harrup

Tritax Eurobox has reached agreement to acquire a newly built 34,125m² logistics facility in Nivelles. The seller is Logistics Capital Partners (LCP) and the deal is reported to be for a sum of € 31.2 million, at a yield calculated at 4.8%. Completion of the acquisition is subject to practical completion of the development that is scheduled for this month. LCP will then continue to manage the asset, as part of its ongoing management contract across the portfolio.

This logistics centre comprises two units of 18,140 m² and 15,985 m². The larger unit is let to Belgian multi-channel pharmacy retailer Medi-Market , a on a new nine-year lease. The second unit is currently vacant and has a 12-month rental guarantee. The company indicates that it is already in discussion with various parties who have expressed interest in leasing the space and says that it is confident that it will be able to lease the unit quickly and benefit from any increased value that a new lease may create.

Nick Preston, Fund Manager of Tritax EuroBox, as quoted by Europe RE, comments: “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. 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.”

Where the environmental question is concerned, Tritax Eurobox states that the centre will have roof-mounted photovoltaic panels and a power purchase agreement is in place with Medi-Market. The centre also benefits from sustainability features including LED lights, energy-efficient heating and rainwater recycling. A new cycle path and storage facilities are being provided.

London based Tritax has a logistics portfolio which totals around 900,000 m². On its websites it describes its activities as follows: ‘Tritax EuroBox plc invests in and manages a well-diversified portfolio of large Continental European logistics real estate assets, which fulfill key roles in the logistics and distribution supply chain. Our assets are focused on the most-established logistics markets and major population centres, across core Continental European countries’.