Tritax EuroBox has acquired a prime, modern logistics warehouse at Peine, near Hannover, Germany for €81.6m. The property is let to Action Logistics Germany GmbH, the fastest growing non-food discount retailer in Europe, headquartered in the Netherlands and operating across more than 1,253 stores in seven countries.
This brand new, well specified, purpose-built asset is in an established logistics location with excellent road, motorway and railway connectivity. Located close to Hannover and Brunswick, on the A2 motorway, which crosses Germany linking Berlin to the Rhine/Ruhr region, the area benefits from excellent logistics links and continues to see high occupier demand, a low vacancy rate and limited availability both of logistics buildings and land for development.
Practical completion of the construction is targeted for November 2018. The lease to Action is for a term of 11-years with three further five-year renewal options. The majority of the rent is subject to annual upward only indexation. The property has a gross internal area of 92,454m², an eaves height of 10.5 metres and benefits from cross-docking with significant yard area and parking. The site cover is approximately 48%.
Nick Preston, Fund Manager of Tritax EuroBox, commented: “This is our fifth investment for Tritax EuroBox plc since IPO in July 2018, bringing the total amount invested to over €440m. This off-market acquisition at an attractive yield of a brand new, purpose-built asset, is in a prime logistics location in Germany that benefits from excellent transport connectivity and strong supply/demand fundamentals. We are delighted with this acquisition, the first in our relationship with Dietz, which demonstrates the high-quality assets in prime locations that Dietz develops. We look forward to growing this relationship in the future.”
