WDP acquires logistics sites in Belgium and France

Warehouses De Pauw (WDP) has acquired two logistics sites in northern France and Belgium through sales-and-leaseback transactions for a combined investment of EUR 21mln. The Belgian closed-end real estate investment company said it has also reached agreements with new tenants for two other projects under development.

WDP said it had acquired the 30,000 m² logistics site of an important European textiles group near Lens in northern France for EUR 18.55mln. Located on a 90,000 m² land site, expansion is possible through construction of a new 18,000 m² building on the plot. Without taking into account expansion potential, WDP said the initial return would be 7.28%. The existing building is leased for nine years fixed at a rent of EUR 1.35mln per year double net. This means that all expenses are borne by the tenant expect those involving the building structure and roof.

The second sale-and-leaseback transaction involves the purchase of the Belgian headquarter and a distribution centre with a surface area of 2,400 m² in Puurs, Belgium to the Dutch drink distributor Maes International. The rent amounts to EUR 196,000 per year triple net, which means the rent represents the net yield for the landlord, corresponding to a 7% return.

WDP said it had also reached an agreement with two new tenants, the Dutch Centraal Boekhuis and Distrilog, to construct tailor-made projects in sites in Zele and Aarschot, Belgium. At Zele, WDP will build a 5000 m² cross docking warehouse for Dutch Centraal Boekhuis, which is scheduled for delivery for 1 January 2009 and will be leased for nine years to the Centraal Boekhuis.

Other site tenants include DSC NV, the Flemish Opera and United Promotions. In Aarschot, instead, on a 15,000 m² plot acquired by WDP last year, the company will soon start construction of an 8500 m² building for Distrilog. The building is scheduled for completion on 1 January 2009 and will also have a nine-year lease.