European logistics investor-manager Tritax EuroBox has purchased a logistics warehouse in Piacenza, Northern Italy, its third in the country to date.
The €49.7 mln asset is located in a key logistics hub, fronting the A1 motorway which connects Milan to Rome. The A21 east to west route, linking Turin and Brescia, runs in close proximity.
The property comprises two units (DC4 and DC5), constructed in 2016 and 2020, with a total gross internal area of 47,800 m2. They hold BREEAM Very Good and BREEAM Excellent sustainability certification, respectively, as well as having roof-mounted photovoltaic systems.
The units are let on two separate leases to OVS SpA, an Italian fashion brand which uses the property as its European distribution hub. The lease on DC4 runs for a further eight years and that on unit DC5 for nine years. Both leases are subject to annual indexation.
The gross annual rent of €2.01 mln reflects an average of €44 per m2 which is below prevailing headline rents of €47 per m2.
Tritax EuroBox said the acquisition forms part of the company’s deployment strategy following its €350 mln equity raise in September and €500 mln green bond issuance in June.
Freddie James, assistant fund manager of Tritax EuroBox, commented: ‘We are delighted to acquire our third property in Italy, complementing our existing asset near Rome and development near Turin. Piacenza is a key logistics hub within the Italian logistics sector, a market experiencing high levels of occupational demand and low vacancy rate, which is leading to rental growth.
‘The asset is let below the prevailing rental tone, offering potential for enhanced future income returns. The addition of BREEAM Very Good and Excellent certification complements and further reinforces the company's ESG credentials.’
