Aberdeen Standard European Logistics Income PLC has exchanged contracts to acquire Flörsheim Logistics Park, Frankfurt for a net value of €20.1m from SEGRO Zehnte Grundbesitz GmbH.
The acquisition will be funded from existing cash, following the successful launch of the Company on Friday 15 December 2017, with a deal closing expected towards the end of January 2018.
This first investment fits well with the investment strategy given the modern and flexible specifications of the building and the central location in the Frankfurt Rhine-Main area, one of Germany’s strongest economic regions with almost 6 million inhabitants. The park is strategically located just five kilometres south-west of Frankfurt airport alongside the A3, one of Germany’s main cross-border motorway routes.
Total property size is 17,809 m² comprising two high quality logistics warehouses newly constructed in 2015 on freehold ground. Flörsheim is fully let to five logistic tenants and benefits from almost full annual rent indexation (CPI) and a weighted average unexpired lease term (WAULT) of 5,5 years.
Evert Castelein, the Company’s Fund Manager, commented: “We are very pleased with this first acquisition by the Company. With the support from our local Frankfurt-based asset management team, we are confident that we can generate a durable income stream from this asset and remain confident about the pipeline of further investment opportunities.”
