Tritax EuroBox has acquired a regional fulfilment centre in Passo Corese, Rome, let to a financially robust world leading online retailer. The vendor is Segro. The total consideration is €118m (excluding purchaser's costs), reflecting a net initial yield of 5.0%. This new purpose-built, regional fulfilment centre, a key part of the tenant’s pan-European network, is strategically located in a prime logistics location 35km northeast of Rome with good access to the A1 (E45), the principal north-south axis motorway in Italy. The site benefits from good rail and airport connectivity and forms part of a new industrial/logistics park.
This high specification logistics facility, purpose-built in August 2017, has a gross internal area of c.158,000m², is built over three levels with a maximum eaves height of 14 metres and a site cover of 35%. The building has benefited from significant capital investment from the tenant.
The property, which is the occupier’s only regional fulfilment centre in southern Italy, is let on a 15-year full repairing and insuring lease that commenced on 7 August 2017, reflecting an unexpired lease term of just under 14 years.
Phil Redding, Chief Investment Officer of Segro, said: "Having developed and delivered this state-of-the-art facility for one of our key customers, the largest Segro has ever developed, we have taken the opportunity to sell the asset to capitalise on very strong demand from a wide range of international investors."
Nick Preston, Fund Manager of Tritax EuroBox, commented: “We are delighted to announce the second investment for Tritax EuroBox, with the acquisition of this regional fulfilment centre, which provides the Company with 14 years of core foundation income, let at a market level to a world-leading online retail company. This purpose-built asset is situated in a prime logistics location just north of Rome, Italy’s largest urban conurbation. Benefiting from excellent transport connectivity, the property plays a key role in the occupier’s network in Italy and across Europe and has benefited from significant capital investment. Central Italy’s logistics market continues to see strong and growing demand from occupiers with limited availability of large-scale, modern, grade A logistics buildings and development land. Supply/demand dynamics evident in the Rome/Central Italy logistics market provide good income growth potential for this property.”