Tritax EuroBox has acquired a global distribution centre at Llica d’Amunt, Barcelona let to Punto Fa S.L., trading as Mango, one of the world’s leading fashion retailers. The total consideration is €150m (excluding purchaser's costs), reflecting a net initial yield of 5.0% on the corporate acquisition.
This state-of-the-art global distribution centre is located 25 km north of Barcelona and is directly accessible from the European motorway network. Barcelona’s port and airport are within a 25-minute drive. This high specification logistics facility, purpose-built in 2016, has a gross internal area of 186,138m², a maximum eaves height of 40 metres and multi-level mezzanines.
The building has benefited from significant capital investment incorporating a high level of automation and racking. The property is let on a 30-year full repairing and insuring lease that commenced on 20 December 2016, reflecting an unexpired lease term of over 18 years to the first tenant break option in 2036, with further break options in 2039 and 2042. The rent is subject to annual upward only indexation. This off-market investment also benefits from two options to extend the property on an adjacent plot of land. If implemented, these extensions would increase the size of the asset by over 55,000m².
Nick Preston, Fund Manager of Tritax EuroBox, commented: “We are delighted to announce the first investment for Tritax EuroBox and to be investing in this prime, state-of-the-art, global distribution centre let on a long lease to Mango, a leading global fashion retailer. This property plays a critical role in Mango’s global supply chain and has benefited from a significant capital investment with high levels of automation. Barcelona is Spain’s second largest city and its logistics market is one of the strongest in Europe, with deep tenant demand and a very constrained supply of available logistics buildings and development land, especially for logistics assets of this size. We believe that the supply/demand dynamics evident in the Barcelona logistics market provide good income growth potential for this property.”
