European logistics investor Tritax EuroBox has inked a deal to buy land and provide forward funding for the development of a new warehouse facility in Settimo Torinese near Turin, Northern Italy for €24.39 mln.
The property will be developed by LCP IT DC 3, part of the Logistics Capital Partners group of companies, a key development partner for Tritax. The construction of the facility is expected to complete in 2022.
The new project will be a speculatively developed last mile urban logistics warehouse, comprising approximately 28,300 m2 of cross-docked lettable area. The planned facility can be subdivided further to accommodate various tenant requirements and will be specified to achieve a BREAM Very Good rating and equipped with environmentally sustainable energy features such solar power generation across the roof area, rainwater harvesting and recycling.
Nick Preston, fund manager of Tritax EuroBox, said: 'Continuing the deployment of proceeds of our €230 mln equity raise in March this year and of our subsequent €500 mln green bond issuance in June 2021, we are delighted to enter into conditional contracts to acquire our second asset in Italy which complements our existing asset near Rome and further reinforces the company’s ESG credentials.'
Andrea Benvenuti, managing director at LCP added: 'we are excited to have agreed speculative forward funding terms with Tritax Eurobox.
'This site benefits from its proximity to the A4 highway and given the lack of Grade-A supply in the A4 Turin sub-market, we are witnessing strong leasing activity via our recently appointed agents, Cushman and Wakefield.'
The acquisition, currently unlet, benefits from a rental guarantee provided by LCP Milan amounting to approximately €1.277 mln from completion of the construction of the facility. The transaction reflects an accretive net initial yield of 4.8% after costs.
Added Preston: 'Italy, like other markets, is seeing growing online retailing and supply chain optimisation, leading to increased demand for the best located logistics properties.
'The pandemic has accelerated these trends and further enhanced the prospects for the sector. We remain confident that these long-term positive structural tailwinds, combined with our high-quality portfolio and our ability to unlock value from it, will help ensure that we will continue to deliver shareholder value.'
