Euronext-listed Montea said it has acquired a class-A logistics platform in Saint-Cyr-en-Val, south of the French city of Orléans for over EUR 35 mln, reflecting a gross yield of 8.5%. The investment will be entirely funded with bank loans and/or a capital increase, the Belgian logistics group said.

Euronext-listed Montea said it has acquired a class-A logistics platform in Saint-Cyr-en-Val, south of the French city of Orléans for over EUR 35 mln, reflecting a gross yield of 8.5%. The investment will be entirely funded with bank loans and/or a capital increase, the Belgian logistics group said.

The warehouse is entirely leased on a nine-year contract to logistics services firm FM Logistics, generating a rental income of EUR 3 mln per annum. Developed between 1996 and 2006, the property is located on a 152,000 m2 site and offers some 75,000 m2 of logistics space.

The transaction is expected to be completed in early July 2010.

Montea said that this new investment contributes positively to the average length of its leases, which currently amounts to 5.62 years.

'With this transaction, Montea confirms its strategy to become a leading player in the French and Belgian logistics and semi-industrial markets,' said Dirk De Pauw, Chief Executive of Montea. Following the acquisition, the company's French portfolio represents 38% of Montea's total assets.