Intervest Offices & Warehouses acquires second distribution center in Oevel (BE)

Intervest Offices & Warehouses has expanded its real estate portfolio and invested €7.9 million in the acquisition of the long-lease rights of a second distribution center in Oevel. The site is located on the important logistics corridor Antwerp - Limbourg - Liège and is easy accessible via the E313 and the E314.

This site is an extension of the state-of-the-art logistics site West-Logistics which was already acquired in 2011 and forms one entity, enabling the further optimization of both sites. This site also comprises several connecting warehouse spaces, forming one entity together and which have been renovated in 2004 for the purpose of the current activities. Besides, separate offices are located on the site.

This site consists of a total of 8,814 m² warehouse space, 2,178 m² office space, 504 m² social areas and outside parking spaces. The building is connected by means of a conveyor to the adjacent buildings of West-Logistics, forming one operational entity. The site can be expanded in the future with a unit of approximately 3,000 m², so that both sites are not only connected by a conveyor but also by a physical building.

The building is entirely let till 2019 to the cosmetics concern Estée Lauder. The warehouses are used as fine-picking warehouses as a complement to the European Distribution Center for Northern Europe of Estée Lauder, run by UT i in West-Logistics. The fine-picking warehouses are highly automatized.

This acquisition generates rental income for the property investment fund of approximately €0.7 million on an annual basis and contributes immediately to the operating distributable result of the property investment fund.

The acquisition price of the long-lease rights of this logistics site amounts to approximately €7.9 million (fair value €7.7 million). This acquisition price is in line with the valuation made by the independent property expert of the property investment fund.

This investment provides Intervest Offices & Warehouses an attractive gross initial yield of 9%. The long-lease rights still have a remaining term of 92 years. The investment is financed from the funds available through the optional dividend and from the existing credit lines of the property investment fund.

This transaction has been assisted by Jones Lang LaSalle.

After this investment in the logistics market the composition of the real estate portfolio of the property investment fund comprises 63% offices and 37% logistics properties.

"This additional site is a long term strategic complement to the real estate portfolio of the property investment fund. The combination with the formerly acquired site in Oevel forms an opportunity to further increase the efficiency of the sites and to offer the users long term future perspectives on the site," says Jean-Paul Sols, CEO, Intervest Offices & Warehouses.

Source: Thomson Reuters

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