Tritax EuroBox is investing €24.4m in a forward funding deal to buy a logistics warehouse facility in Northern Italy.
The London-listed company, which invests in prime logistics real estate across continental Europe, said it has agreed to buy a site for the development of the 28,249sqm cross-docked logistics warehouse facility in Settimo Torinese near Turin.
The property will be developed by LCP IT DC 3. The construction of the facility is expected to complete in 2022.
Nick Preston, fund manager of Tritax EuroBox, said: “Continuing the deployment of proceeds of our €230m equity raise in March this year and of our subsequent €500m green bond issuance in June 2021, we are delighted to enter into conditional contracts to acquire our second asset in Italy which complements our existing asset near Rome and further reinforces the company’s ESG credentials.
“This development funding provides us with the opportunity to add further value to the asset in line with our evolved investment strategy.”
Italy, like other markets, is seeing growing online retailing and supply chain optimisation, leading to increased demand for the best-located logistics properties, Preston said, adding that the pandemic has accelerated these trends and further enhanced the prospects for the sector.
“We remain confident that these long-term positive 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.”
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