Delin Capital Asset Management has acquired a portfolio of two large, modern distribution warehouses in the Netherlands, for a total consideration of over €80 million, representing an initial yield of approximately 7.7 %.
This acquisition represents DCAM’s fifth purchase on behalf of its €400 million Capital Preservation Portfolio I, (‘CPP I’ or the ‘Fund’), the Company’s inaugural core plus logistics fund launched in October 2012, and means it has now deployed circa €165 million of equity into the European logistics sector representing over 206,000 m² of prime distribution space.
The assets are located in the strategic and well-established logistics hubs of Tilburg and Eindhoven. DCAM acquired the portfolio from Dok Vast, a private Dutch family owned group which was also the developer of the assets. The portfolio also includes a small, separate office building adjoining the Tilburg warehouse.
Located in Noord-Brabant, a modern industrial city, situated in Tilburg the 45,000 m² warehouse was constructed between 2007/2008 and is let to three tenants, Dobologic, Schenker and Gebr. Huijbregts Groep BV generating a passing rent of circa €2.9 millon per annum on a weighted average lease term of circa seven years. The separate 1,963 m² office, which formed part of the transaction is let to Van de Ven.
The construction of the Eindhoven warehouse completed in April 2013 and it provides circa 57,000 m² of state of the art and energy efficient accommodation.
In addition, DCAM also announces that it now has completed on the €13 million forward purchase, as agreed in December 2012, of a 17,320 m² distribution warehouse development located in Waalwijk, the Netherlands. The construction of the asset was completed in July 2013 and it is fully let to the McGregor Fashion Group on a new 15 year lease.
Christian Jamison, Chief Executive Officer of DCAM commented: “This portfolio acquisition is our largest single deal to date on behalf of CPP 1 and it highlights our continued commitment to buying prime, modern logistics assets in our core European target markets to provide CCP I’s investors with long-term income distribution combined with real capital preservation. The Netherlands is and will remain a key strategic focus for our investment, due to its multimodal, international transport links that serve as a gateway for European supply chains.
“With over €165 million of equity now invested in a good quality portfolio of income producing assets we will now look at opportunities to introduce some leverage to the fund, whilst we continue to seek further opportunities to grow through acquisition.”
NL Real Estate B.V. / Knight Frank and CMS Derks Star Busmann advised DCAM on both acquisitions.
Source: FTI Consulting