Tritax EuroBox, a newly-launched logistics property firm focused on Continental Europe, has announced its first acquisition with the purchase of Mango's global distribution centre at Lliçà d'Amunt, Barcelona for a total of €150 mln.
The deal reflects a net initial yield of 5.0%.
Vendor VGP said it will reinvest the funds in the expansion of its development pipeline.
This high-specification logistics facility, purpose-built in 2016, has a gross internal area of 186,138 m2 and is let on a 30-year full repairing and insuring lease that commenced on 20 December 2016, reflecting an unexpired lease term of over 18 years to the first tenant break option in 2036, with further break options in 2039 and 2042. The rent is subject to annual upward only indexation.
The off-market investment also benefits from two options to extend the property on an adjacent plot of land. If implemented, these extensions would increase the size of the asset by over 55,000 m2, the buyer said.
Nick Preston, fund manager of Tritax EuroBox, commented: 'We are delighted to announce the first investment for Tritax EuroBox and to be investing in this prime, state-of-the-art, global distribution centre let on a long lease to Mango, a leading global fashion retailer. This property plays a critical role in Mango's global supply chain and has benefited from significant capital investment with high levels of automation.'
Tritax EuroBox raised £300 mln at its IPO earlier this year. The company aims to invest some €600 mln in logisitcs around Europe by the end of the year and is targeting an initial dividend yield of 4.75%.
Jan Van Geet, CEO of listed logistics property developer VGP, commented: 'The acquisition of the Mango building in 2016 was a real milestone in our introduction to the Spanish market - that is why we thought about this transaction for a long time and finally came to the conclusion that the sale of the Mango building under these conditions are in the interest of the shareholders of VGP.'
