European logistics specialist Tritax EuroBox has agreed to acquire land and fund the development of an €117.91 mln asset in a prime location in the Rhine-Ruhr region in Germany.
The property has been pre-let to Rhenus Warehousing Solutions, a global logistics service provider.
The property will comprise a single building with a total gross internal area of approximately 66,065 m2 comprising six purpose-built logistics units. The development is expected to be completed in February 2023.
Alina Iorgulescu, assistant fund manager of Tritax EuroBox, commented: 'The Rhine-Ruhr region of Germany is the largest population centre in the country and is an area which benefits from excellent transport connectivity and strong supply / demand fundamentals.
'This is the tenth German investment in the Tritax EuroBox portfolio, bringing our total amount invested in the country to just over €700 mln, providing significant critical mass in the most important logistics market in Europe.'
The entire building is pre-let on a 15-year lease to Rhenus, commencing on practical completion expected in February 2023. The lease will generate a total annual rent of approximately €4.1 mln.
The forward funding development agreement means that Tritax has purchased the land and will fund the development the asset at a fixed total cost of €117.9 mln. The price reflects a net initial yield of 3.5% based on the agreed income from the lease.
The project meets several of the company’s sustainability objectives via redevelopment of a brownfield site to a DGNB Gold in use sustainability standard, and forms part of the deployment strategy for Tritax EuroBox following the successful equity raise in September 2021.
