Cordea Savills has completed the acquisition of two distribution warehouses and an office building for a combined price of €48 million in Belgium and the Netherlands. The acquisitions are in Eindhoven and Rotterdam in the Netherlands, and in Houthalen, Belgium, and were purchased on behalf of the Cordea Savills Pan European Property Fund SGR and the Europa Immobiliare No.1 Fund, a joint venture with Vegagest SGR SpA.
Distribution Warehouse, Houthalen.
Purchased for €19.3 million, the new distribution warehouse in Eindhoven produces a gross initial yield of 7.25% and is let to Philips Lighting as their European Regional Distribution Centre. The second warehouse, situated in Houthalen, is occupied by Caterpiller Logistics who have the EMEA distribution contract for Harley-Davidson motorcycles. It was purchased for €14.6 million with a gross initial yield of 6.85%. The office building in Rotterdam is let on a new 10-year lease to Imtech and was purchased for €13.8 million with a gross initial yield of 6.87%.
Office building, Rotterdam.
Distribution warehouse, Eindhoven.
Richard Lake, Director at Cordea Savills, comments, "These recent purchases further underline our pan-European credentials and our ability to source attractive deal opportunities in a highly competitive marketplace. Belgium and the Netherlands are extremely well located for access to the North Sea ports and for distribution of products across Europe with easy access to this densely populated region of Western Europe. As such, logistics facilities are in high demand from occupiers and investors alike.
"As is common across much of Europe, industrial-related properties tend to deliver high and dependable income returns to their investors. To have secured these properties on such terms gives us confidence that we will deliver a significant proportion of the required return to our investors from the income alone."
Over the last eight months Cordea Savills has acquired €130