Delin Capital Asset Management, a Jersey registered real estate investment advisor and asset manager focused on investments in logistics assets in the UK, Belgium and the Netherlands, has continued its active acquisition program with the purchase of its fourth asset, for its €400 million Capital Preservation Portfolio I.
The Company has acquired Distripark Sittard, a 51,276 m² modern, standard distribution warehouse located in Born, the Netherlands from DHG Group, the original developer of the asset, for a purchase price of c. €36 million. The acquisition price reflects a gross yield of c. 8.2%. The multi-let asset is fully leased to a number well known and financially strong tenants including Kuehne & Nagel Logistics BV, Helly Hansen, Emhart Teknologies and Geka Textiles on an average lease length of five years.
Born, situated in the province of Limburg is a strategic location for logistics and distribution, situated in the southern part of the Netherlands it delivers multi-modal connections, benefitting from access to road, rail and water, with the barge terminal in Born providing a direct connection with the harbours of Antwerp and Rotterdam. This location, together with its multi-modal connections, means it has excellent connectivity to the 50 million people across the Netherlands, Belgium and Germany which can be served within a 200 kilometer radius of the warehouse as well as Europe’s other key metropolitan areas.
Jones Lang Lasalle and CMS Derks Star Busmann acted for DCAM and Loyens & Loeff acted for DHG Group. DTZ will be undertaking the property management on behalf of CPP1.
DCAM was established with the intention of acquiring income producing distribution assets in core logistics locations to deliver CPP I’s investors stable and, where possible, indexed linked long-term income returns combined with real capital preservation. Its core, inaugural fund was launched in October 2012 and, following today’s transaction the Company has acquired four assets in the Netherlands and the UK, deploying over €80 million of equity into the European logistics sector. DCAM’s location-led investment strategy is focused on the UK, Netherlands and Belgium and on logistics assets within these selected markets which demonstrate defensive qualities through their potential to generate strong, sustainable levels of income and above inflation capital growth outside of the current economic cycle.
Christian Jamison, Chief Executive Officer of DCAM commented: “We are very pleased to have completed our fourth acquisition within five months of launching our fund. Distripark Sittard, Born is a large, modern asset which complements and diversifies our existing portfolio whilst again providing our investors with a high quality investment, which we believe will support us in our aim to preserve capital whilst providing good quality income.
“The transaction is again typical of the type of assets that we are seeking acquire, being well located for European logistics, benefitting from multimodal transport links close to major international transport hubs, providing inflation indexed income from high quality tenants with strong covenants. We are continuing to examine an exciting pipeline of deals and this transaction further demonstrates our ability to execute deals quickly on an all equity basis.”
Source: FTI Consulting