Warehouses De Pauw (WDP), the Belgian closed-ended logistics real-estate investment company, has agreed in principle to acquire a property portfolio from Belgian fruit and vegetable group Univeg.
Warehouses De Pauw (WDP), the Belgian closed-ended logistics real-estate investment company, has agreed in principle to acquire a property portfolio from Belgian fruit and vegetable group Univeg.
WDP said it is buying six warehouses in Belgium, totalling 60,000 m2 of space, and two in the Netherlands that provide another 60,000 m2 of space. Most of the portfolio space is leased for 20 years, and the remaining 10% for 15 years, to businesses within Univeg. The initial investment by WDP comes to EUR 100 mln and closure of the transaction is expected by 1 July 2007.
Four of the sites are still under construction and WDP is planning to invest an additional EUR 50 mln to complete the projects. The rental income on the portfolio amounts to EUR 6.3 mln per year. The transaction will reflect a net return of 6.4%.
WDP said it is planning further property acquisitions to increase the value of its overall portfolio from EUR 550 mln to EUR 700 mln by 2009.