European logistics specialist Tritax EuroBox has acquired an asset in the Rhine-Ruhr region in Germany for €32 mln from developer Dietz.
The asset, held freehold, has a total gross internal area of approximately 16,632 m2 and comprises three purpose-built logistics facilities located in the region's prime logistics location, Gelsenkirchen. Unit 1 is expected to be completed in December 2021 whilst units 2 and 3 will be delivered in January-February 2022.
Tritax said that the brownfield site could be redeveloped to a DGNB Gold in use sustainability standard.
Alina Iorgulescu, assistant fund manager of Tritax EuroBox, commented: 'We are delighted to be acquiring this asset, which is the ninth German investment for Tritax EuroBox, bringing our total amount invested in the country to just over €600 mln.
'This off-market acquisition of a new, purpose-built asset is at an attractive yield which also offers opportunities to add value through capturing the convincing rental growth in the area.'
Of the building’s three units, Units 1 and 2 are let to strong tenants with robust covenants, whilst Unit 3 is currently vacant with the benefit of a rental guarantee.
The asset will generate a total annual rent of €1.21 mln on leases with a weighted average unexpired lease term of six years.
The acquisition price of €32 mln reflects a net initial yield of 3.7% based on the income from the existing leases and rental guarantee, with the opportunity to capture upside from the letting of the vacant unit.
This acquisition forms part of the firm's deployment strategy, following a successful equity raise in September 2021 and the green bond issuance in June 2021.
