ING Real Estate European Industrial Fund, managed by ING Real Estate Investment Management and Goodman Group today jointly announce that ING REEIF has acquired two 'Grade A' logistics platforms in Tilburg and Roosendaal, The Netherlands for approximately 42 million from Goodman, on behalf of Goodman European Logistics Fund.
The first facility, located in Tilburg, 30 kilometers northwest of Eindhoven, has a total area of 31,326 m² and is fully let to Rhenus with a 9-year firm lease term. Separately, the 33,100 m² Roosendaal warehouse which has been acquired is fully let to CEVA, with an 8year firm lease term and is situated alongside the A17 motorway that connects the major port cities of Antwerp and Rotterdam.
Furthermore, both assets are located in a prime and modern European logistics area (North Brabant), situated within five kilometres of the A58 motorway, which provides easy access to the European hinterland.
Pierre-David Baylac, ING REEIF Fund Manager, said: "These two transactions enable the Fund to extend its logistics portfolio at an excellent moment in the real estate cycle, while at the same time increasing our exposure in the Netherlands. The covenant of the two tenants corresponds to the selective approach for the ING Real Estate European Industrial Fund.
During 2009, we have significantly increased the ING REEIF portfolio with the acquisition and delivery of 210,000 m² industrial area. The Fund portfolio totalizes now 31 buildings and more than 900,000 m² of which 13% in the Netherlands. To benefit from the current re-pricing of the logistics sector in continental Europe, a number of projects are in progress for 2010".
Alex Bignell, GELF Fund Manager, said: "This transaction strengthens our capital position and is consistent with our strategy to reduce the level of gearing in the Fund over the medium term. Going forward GELF will continue to evaluate asset disposal options to achieve its objectives of recycling capital into opportunities providing enhanced risk-adjusted returns and controlled deleveraging. We have a substantial portfolio of 82 properties in prime locations across continental Europe, which enables us to work closely with and retain a high calibre customer base. Importantly this ensures that we will continue to generate stable income-driven returns for our investors. "
Jones Lang LaSalle advised ING REIM in this transaction.
Source: ING Real Estate Investment Management