TH Real Estate has agreed contracts to forward fund a c. 19,500 m² development project in Waddinxveen in the Netherlands, on behalf of its European Logistics Fund (ELOF), for c. €22.6m. The asset was acquired for the fund by TH Real Estate, together with Cording Real Estate Group, the preferred Dutch partner for Logistics investments in the Netherlands for TH Real Estate.
The asset, a development of VolkerWessels Vastgoed and VolkerWessels Logistics Development, who will complete construction of the project in Q2 2018, comprises c. 14,470 m² of distribution space and 3,845 m² of office with a c. 1,110 m² mezzanine level. The site has been 100% pre-let to Eosta, an international distributor of organic fresh fruits and vegetables, who has signed a fixed 15-year lease. The asset will be of an institutional Grade A quality and will be built in accordance with all state of the art logistics asset requirements.
The new development will be located at the brand new Logistiek Park A12, a new area especially designated for logistics activities in Waddinxveen. The city is an established location for logistics activities with a large share of national and international distribution activities and retailers. Waddinxveen is considered a cargo transport centre due to its unique location between Rotterdam, Amsterdam, Utrecht and the Hague.
Tim Hennes, Fund Manager for ELOF at TH Real Estate commented: “The Dutch logistics market has specific benefits due to its centralised location in Western Europe as well as the location of the main ports. Waddinxveen, in particular, benefits from its location between four major Dutch cities (Rotterdam, Amsterdam, Utrecht and the Hague). Combined with the micro-location of this development, within a dedicated logistics park, and the long-term lease with Eosta, which will deliver a defensive income stream from a good tenant covenant, this asset fits perfectly with our strategy for the Fund, which targets low risk logistic assets with high growth potential.”