French SCPI Iroko Zen has acquired a warehouse in Leon, Northern Spain, from abrdn European logistics income (ASLI) for €18.5 mln.
ASLI said that the price achieved was 3% above the asset's 31 December 2022 book value.
The 32,645 m2 warehouse in Leon is located in the Villadangos industrial area.
ASLI acquired the asset in 2018 for €15.3 mln with the sale reflecting a crystalised 20% gross profit. It is currently leased to Decathlon with a weighted average unexpired lease term (WAULT) of 6 years.
Representing ASLI's first disposal, the transaction reduces the company’s LTV to 33% (based on 31 December 2022 valuations) and improves its cash position, whilst increasing the portfolio’s urban logistics weighting.
An adjustment to the fixed term debt arrangement over the asset reduces the company’s all-in interest rate to 1.97%.
Troels Andersen, lead fund manager for ASLI, commented: 'Having performed well since acquisition, this is the right time to crystallise our investment by disposing of one of our more mature assets.
'This sale, which was achieved ahead of the most recent valuation, underlines the resilience of the Continental European warehouse sector and continues our portfolio pivot towards more urban assets with strong sustainability credentials.
'Spain remains one of our high conviction markets, with our Spanish assets now wholly concentrated around the sought-after urban locations of Madrid and Barcelona.'
