Tritax EuroBox has agreed to acquire land and fund the development of circa €118m asset in a prime location in the Rhine-Ruhr region in Germany, which is pre-let to the Rhenus Warehousing Solutions SE & Co KG. The property will comprise a single building with a total gross internal area of approximately 66,065m² comprising six purpose-built logistics units located in the heart of the prime logistics location in the Rhine-Ruhr region. The development is expected to be completed in February 2023. The site benefits from easy access to motorway infrastructure, which enables its connectivity with one of the most important logistics hubs in Europe. This project meets several of the company’s sustainability objectives via redevelopment of a brownfield site to a DGNB Gold in use sustainability standard. The entire building is pre-let on a 15-year lease to Rhenus, commencing on practical completion expected in February 2023. The lease will generate a total annual rent of approximately €4.1m.
Alina Iorgulescu, Assistant Fund Manager of Tritax EuroBox, commented: “The Rhine-Ruhr region of Germany is the largest population centre in the country and is an area which benefits from excellent transport connectivity and strong supply/demand fundamentals. This is the tenth German investment in the Tritax EuroBox portfolio, bringing our total amount invested in the country to just over €700m, providing significant critical mass in the most important logistics market in Europe. This off-market funding, developed by our long term development partner Dietz AG, is at an attractive yield which also offers the opportunity to capture the rental growth evident in the prime German logistics market.”
