Tamar European Industrial Fund announces that it has signed an extension of the lease of its largest asset at Svelvikveien, Drammen, Norway, extending its expiry to November 2020.
The asset comprises 18,352 m² of logistics warehousing and offices, located in the port of Drammen, some 40 km southwest of Oslo. It was let to Bauda AS, a company which owns several Toyota dealerships in Norway and in which Toyota owns a 40% stake, on a lease that was due to expire in November 2013.
The property is occupied primarily by various subsidiaries of Toyota, and new leases have been signed with two of these, Toyota Norge AS and Toyota Kreditbank Gmbh, for fixed terms expiring in November 2020. The leases comprise 97% of the property area, with the remaining space continuing to be occupied by Bauda until the original lease expiry in November 2013.
The rent agreed with Toyota of NOK 12.99 million pa (approx. €1.75 million) is at the market rental value and represents a marginal fall of 1.4% in net operating income.
Rob Brook, Managing Director of Tamar Financial Services Ltd, Investment Manager to TEIF, commented: "It is a very satisfying result for the Fund to see the income from our largest tenant at our highest value asset extended by seven years.
"In a tough investment market, this will increase the asset's desirability and liquidity, which is clearly an important achievement in the light of the Fund's Nordic exit strategy."
Source: FTI Consulting