Pan-European logistics specialist Montea has sold three warehouse assets in France to Patrizia Immobilien's Logistik Invest Europa I fund for €60.4 mln, representing an average initial yield of 6.88%.
Montea said that the book value of the three assets, which generate an annual rental income of €4.4 mln, was €51.1 mln.
'The capital gains constitute proof, in our view, of the prudent and conservative valuation of Montea's property portfolio in view of the great interest in qualitative logistics real estate on the market,' commented Els Vervaecke, chief financial officer at Montea. 'The revenues from the sale will be used in 2017 to acquire a number of new projects in the development phase and to finance a number of our own developments.'
The properties include a logistics building in St Cyr en Val with a total floor space of ca 75,000 m2, let to FM Logistics; an asset in Tilloy-lez-Cambrai, with a total floor space of 11,000 m2, let to C-Log, and a warehouse in Savigny-le-Temple, with a total floor space of 16,000 m2, let to Le Piston Francais.
'The full selling value is expected to be reinvested by the end of the second quarter of 2017,' said Vervaecke. 'This operation will therefore have a temporary impact on the results, but Montea still aspires to have the net current result grow by 5% a year. In addition, this sale improves the average term of the leases in the portfolio from 6.8 to 7.2 years and reduces the debt ratio of 55.4% to 50.5%.'
'Although this sale reduces France’s share in the portfolio temporarily from 25% to 17.5%, this in no way presages a disengagement from France. Montea bolstered the local team further last year and continues to look for growth opportunities in France,' added Montea's CEO Jo De Wolf.
Last month, Montea obtained a permit for a 42,000 m2 project in Camphin-en-Carembault, south of Lille, and said it was in talks with potential tenants.
