Intervest Offices & Warehouses acquires distribution centers in Oevel and Houthalen (BE)

Intervest Offices & Warehouses has expanded its real estate portfolio through an investment of €35.8 million via the acquisition of two logistics sites in Flanders. Both sites are located on the important logistics corridor Antwerp - Limbourg - Liège and are easy accessible by the E313 and the E314.

West Logistics

The logistics site in Oevel.

The site, built in 2007, is a modern state-of-the-art complex of warehouses with office facilities and external parking spaces. The site comprises 27,548 m² of warehouses, 1,711 m² of offices and 65 external parking spaces. Besides, it is possible to realize on term an additional unit of approximately 2,000 m² on the site.

The building is entirely let to UTI Belgium (87%) till 2017 and to Berry Plastics (13%) till 2013. A part of the site, let to UTI Belgium, is used as the European distribution center for Northern Europe for the Estée Lauder company. This acquisition generates rental income for the property investment fund of approximately €1.5 million on an annual basis and contributes immediately to the operating distributable result of the property investment fund.

The acquisition value of this logistics site amounts to approximately €21.5 million (fair value €21.0 million). This acquisition value is in line with the valuation made by the independent property expert of the property investment fund. This acquisition provides Intervest Offices & Warehouses a gross initial yield of 7%.

The purchase price of the shares of the company West Logistics sa amounts to €12.9 million. The transaction is funded from the existing credit lines of the property investment fund and from the take-over of the credit facilities of the company West Logistics sa for approximately €8 million (with a duration till 2017 and 2022).

This transaction was assisted by King Sturge.

Source: Hugin

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