Tritax EuroBox has entered into a conditional agreement with a subsidiary of Dietz for the speculative forward funding acquisition of a €76.4 mln logistics asset in the Düsseldorf region of Germany.
The asset, currently being constructed by the company’s development partner Dietz Aktiengesellschaft, is held freehold and once built will comprise three adjacent units with a total gross internal area of 36,437 m2. The three units offer flexible leasing options either to be let to multiple tenants or a single tenant.
The asset carries an eighteen-month rental guarantee at a rent of €5.60 per m2 per month for warehouse space.
The acquisition price of €76.4 mln reflects a net initial yield of 3.3% based on the rental guarantee income. Market rental levels in this location are expected to exceed €6.00 per m2 per month for warehouse space.
This acquisition forms part of the continued deployment strategy for Tritax EuroBox following its equity raise in September 2021.
Alina Iorgulescu, assistant fund manager of Tritax EuroBox, commented: ‘We are delighted to be acquiring this asset, which is the eleventh German investment for Tritax EuroBox, bringing our total amount invested in the country to over €800 mln. This off-market acquisition gives us the ability to control the desired leasing profile of the scheme through capturing the rental growth evident in the market, and also allowing the Company to introduce open market rent reviews into the lease, providing a mechanism to capture the expected future rental growth driven by the continued favourable imbalance in supply and demand in the German logistics market.’
