Montea finances further growth with the sale of three assets in France for €60.4m to Parizia Logistik Invest Europa I
It concerns the following buildings:
- St Cyr en Val (FR): logistics building with a total floor space of ca 75,000m², let to FM Logistics
- Tilloy-lez-Cambrai (FR): logistics building with a total floor space of ca 11,000m², let to C-Log
- Savigny-le-Temple (FR): logistics building with a total floor space of ca 16,000m², let to Le Piston Francais
The portfolio generates an annual rent income of €4.4m, and is sold at an average initial yield of 6.88%. The average term of the portfolio on the first due date amounts to 3.6 years.
The sale of the building in St Cyr en Val and the building in Tilloy-lez-Cambrai was closed on 29 December 2016. The sale of the building in Savigny-le-Temple will be closed at the latest on 31 December 2017, after a number of alteration works for the current tenant, at the latest on March 31, 2017.
The net selling price of the 3 buildings amounts to €60.4m, compared with a book value of € 51.1m.
“The capital gains constitute proof, in our view, of the prudent and conservative valuation of Montea’s property portfolio in view of the great interest in qualitative logistics real estate on the market”, says Els Vervaecke, CFO Montea. “The revenues from the sale will be used in 2017 to acquire a number of new projects in the development phase and to finance a number of our own developments. The full selling value is expected to be reinvested by the end of the second quarter of 2017. This operation will therefore have a temporary impact on the results, but Montea still aspires to have the net current result grow by 5% a year. In addition, this sale improves the average term of the leases in the portfolio from 6.8 to 7.2 years and reduces the debt ratio of 55.4% to 50.5%".
Jo De Wolf, CEO Montea: “Although this sale reduces France’s share in the portfolio temporarily from 25% to 17.5%, this in no way presages a disengagement from France. Montea bolstered the local team further last year and continues to look for growth opportunities in France”.
Jean De Beaufort, Director France: “We see that the French market has enough potential to develop the further growth of Montea. For instance, last month, we obtained a permit for a 42,000m² project in Camphin-en-Carembault (south of Lille), for which talks are in progress with several potential tenants at this time.