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(Alliance News) - abrdn European Logistics Income PLC on Monday said that it has agreed an immediate lease surrender with Arrival for the warehouse it was previously renting in Getafe, Madrid.
According to the investment fund, which is focused on European logistics real estate, Arrival has surrendered 27,000 square metres of warehousing.
As such, abrdn European has now agreed a new lease for 5,131 square metres of the space with Method Advanced Logistics, at a rent 8.7% above the previous passing rent. Method is a transportation company, which delivers packages across Spain.
abrdn European noted that while no surrender premium has been received from Arrival, it has considered the firm's "well-noted financial position", as well as the administration of its UK operation, and decided to move forward with re-leasing the space.
Method's new lease is for a three plus two year lease, effective immediately. It will embark on a near-term apex programme at its own expense to deliver four new docks in the facade of the building.
"Whilst frustrating that the discussions with Arrival haven't been as positive as hoped, the terms of the new lease and the speed with which our on-the-ground team has executed it demonstrates the strength of demand for highly sustainable, tenant critical warehouse space in the Madrid area," said Troels Anderson, the lead fund manager for ASLI.
abrdn European Logistics Income shares were trading 0.3% higher at 61.00 pence each in London on Monday afternoon.
By Holly Beveridge, Alliance News reporter
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