Property investment fund Intervest Offices acquires a logistics site in Huizingen through a sale-and-leaseback transaction with DHL - Pharma Logistics.
The logistics site is located in the industrial area 'De Gijzeleer' in the southern periphery of Brussels and is easily accessible by the E19 Brussels-Mons-Paris.
The site consists mainly of three buildings, built in 1987 and 1993. Since then, several modifications and renovations have been carried out to the buildings in order to use them as storage for pharmaceutical products. As a consequence, the entire warehouse is equipped with air conditioning. The total surface area of these buildings amounts to 14,878 m² storage, 2,151 m² office space and there are 85 parking spaces.
The site will be entirely re-let by DHL - Pharma Logistics through of a lease contract for nine years including a possibility of termination after the sixth year. The rental income amounts to 605,000 on an annual basis.
The acquisition is subject to registration rights. The purchase price amounts to 7.7 million (registration rights included), which corresponds to a gross initial yield of 7.85 %. The investment value determined by the independent real estate appraiser of the property investment fund is also 7.7 million. The transaction is funded from the existing credit lines of the property investment fund.
This transaction has been assisted by King Sturge.
"Through this acquisition Intervest Offices acquires a splendidly located site on one of the most important logistic corridors in Belgium, with a visible location near the E19. Besides, this acquisition offers a very attractive direct gross initial yield of 7.85% and contributes immediately to the operating distributable result of the property investment fund," said Jean-Paul Sols, CEO Intervest Offices.