WDP purchases two logistics sites in the Netherlands

Closed-end real estate investment company WDP has expanded its portfolio in the Netherlands with the purchase of two logistics sites in Veghel and Raamsdonksveer for a total of EUR 39mln. The projects are the first purchases made by WDP since the opening of its WDP Nederland offices in February this year. After completion and delivery around mid 2009, the new projects will increase the company's Dutch portfolio to EUR 165mln, the company said in its statement.

The Veghel site was acquired for EUR 34mln (including transaction fees) from the British-listed Kenmore European Industrial Fund Kenmore company. The 75,000m² is currently leased to Kühne & Nagel until 2013. The initial gross return is 7.58%, with a first indexing of the rental price planned for 1st January 2009. Completion on 11 July 2008.

The Raamsdonksveer purchase from the Palm group involved a sale-and-rent-back transaction for EUR 3mln. WDP will now take over the 7,000 m² site, which is leased to BSB (Beer and Selected Beverages), the logistics association of drinks suppliers for supplying the Dutch market. BSB has set up its distribution centre for the Netherlands at this site and has a fixed 10-year lease.

WDP will also acquire the adjacent 4,200 m² property on which it will create a 2,760 m² extension for BSB in mid-2009. The investment for this expansion is EUR 2.35 mln, after which the project will have an initial gross return of 7.65%, the company said.

WDP has been focusing activity in the Netherlands since 2007. The latest acquisitions, follow the purchase of four logistics hubs in Breda, Rotterdam, Aalsmeer and Venlo earlier this year, which provided a total area of more than 175,000 m² and a total portfolio value of EUR 125mln (including the completion of current projects). At the start of 2008 WDP also opened offices in the Dutch town of Waddinxveen with the goal of letting the portfolio make a further growth in the short term to EUR 250mln.