Tritax EuroBox has acquired the land for the development of a new high specification and sustainable logistics asset in Oberhausen, a prime location in the Rhine-Ruhr region of Germany. The company will now enter into a forward funding agreement to construct the building. The new property will become the company's 8th German asset.
The scheme will comprise a single building of 23,346m² of ground-level logistics space with additional mezzanine and office accommodation, capable of being split into four separate, equally sized units. The development will be undertaken by Verdion. The land purchase is conditional on receiving the building permit and access rights which are both expected in the near term.
Oberhausen, located between Duisburg and Essen, is one of the cities forming the Rhine-Ruhr area, the largest urban area in Germany with a population of over 10 million. Oberhausen offers easy access to national autobahns 3 and 42, with connections across the region as well as direct routes across Germany and into the Netherlands and Austria. Duisburg port, the largest inland port in the world, is only 15 minutes down the Ruhr river.
The development will be undertaken to high environmental standards, targeting a minimum BREEAM Very Good and DGNB Gold certification, and the construction will include a range of energy-saving initiatives and staff wellbeing measures. The acquisition price of €29.9m reflects a net initial yield of 4.3% based on the income from the rental guarantee.
Alina Iorgulescu, Assistant Fund Manager of Tritax EuroBox, commented: “We are delighted to continue to develop our relationship with Verdion, this being the third forward funded development we have worked on with them. We remain committed to building up a significant presence in prime areas of the German market which are characterised by strong tenant demand coupled with low vacancy levels and very limited land supply, leading to growing rents. This development, a brownfield regeneration project, demonstrates the Company’s ESG policy of replacing redundant properties with modern, sustainable, energy-efficient buildings with significantly improved environmental credentials. The completed building, situated in one of the best logistics locations in Europe, will add to our growing portfolio of similar assets where we continue to create value for shareholders.”