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(Alliance News) - abrdn European Logistics Income PLC on Thursday said that it has agreed a 3,939 square metre lease renewal with Dachser France, an international provider of transport and logistics solutions.
The investment fund focusing on European logistics real estate said that Dachser has signed a 9.5-year lease for a single tenant property in Niort, France, effective January 2023.
abrdn told investors this would generate annual contracted rent of EUR532,900, 20% ahead of the property's September 30 estimated rental value, and 3% ahead of the previous passing rent.
The firm has agreed a rent-free period and committed to a small capex spend to improve the building management system and provide energy efficient external LED lighting.
"Despite the challenging economic backdrop, occupier demand for affordable, well-located warehouse space in our preferred geographies remains robust. Furthermore, the annual CPI indexation across the majority of our leases should drive material income uplifts and remains a key differentiator for the Company. Maintaining our important sustainability approach, we are increasingly agreeing green leases with our tenants, which require both parties to work together to improve an asset's environmental credentials," said Fund Manager Troels Andersen.
abrdn European shares were trading 2.1% higher at 79.30 pence each in London on Thursday morning.
By Holly Beveridge; Alliance News reporter
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