W. P. Carey Inc. has entered into an agreement with developer Borghese Logistics to expand an existing logistics facility situated in the Port of Rotterdam area in the Netherlands. The facility is currently leased to Nippon Express. The expansion, a modern BREEAM and FM certified logistics facility, will provide approximately 32,600 m² of additional floor space to Nippon. Upon completion of the expansion, the building will total 103,951 m².
The development of the facility is anticipated to be completed by 01 July 2019. The space will be then leased to Nippon for a 10-year term with annual CPI rent escalations. W. P. Carey acquired the facility in December 2015 for approximately €38m.
W. P. Carey Managing Director Greg Butchart commented: "This development agreement demonstrates our commitment to creating long-term value for W. P. Carey’s shareholders and supporting our tenants’ growth strategies. W. P. Carey’s ability to invest additional capital in the existing facility allowed us to meet Nippon’s expansion needs while also investing in a sustainable asset. Leasing them additional space tailored to their needs on attractive economic terms enhances the value of the asset and makes the investment advantageous for all parties. We look forward to continuing our relationship with Nippon and their Rotterdam team.”
Danny Levenswaard, Director Distribution & Warehousing Port of Rotterdam Authority, said: “The Port of Rotterdam Authority welcomes W. P. Carey’s expansion of the facility, which is leased to and operated by Nippon Express Netherlands and which will lead to the warehouse being the largest in the Port of Rotterdam. With the expansion, Nippon Express Netherlands underlines its strong ambition for further growth in this premium logistics location at the Gateway to Europe.”