Northern Logistic Property ASA (NLP) has signed an agreement with the Danish global transport and logistics company DSV A/S (DSV) to acquire their property in Brøndby, Denmark. The purchase price is DKK 395 million (approx. €49m).
The deal is financed with a loan of DKK 316 millions with terms in line with NLP's current financing. "These terms displays that it is possible to obtain financing of good properties at a satisfactory cost," NLP's CEO Göran Bengtsson says. "This is an important step in NLP's growth into new markets. The DSV agreement demonstrates that NLP is an attractive partner for international companies in the logistic segment."
NLP's goal is to double its property portfolio to 1.3 million m². "Our growth will be based on the condition of acquiring properties that fulfil our stated investment criteria, including a sound capital return. This deal fulfils these criteria. The investment has a net yield of 6.3%," Bengtsson says.
The property, Kornmarksvej 1, has a lettable space of approximately 47,500 m², of which offices constitute 9,600 m². DSV Road AS will let the entire property. The lease term is six years, with a termination period of 18 months; the gross rent is DKK 26.7 millions, which will be 100% indexed, minimum 2.5 percent per annum.
The property is located with direct access to motorway junctions; close to the Copenhagen city center, airport and the bridge to Sweden. The buildings are of high standard and the area is attractive to business by offering a well developed logistic cluster.
Source: Northern Logistic Property