(Alliance News) - Tritax EuroBox PLC said Friday it has acquired a logistics property near Frankfurt in Germany for EUR50.6 million.
The new 43,000 square metre property is located in Hammersbach and is currently let to Paris-listed distribution firm ID Logistics Group SA on a new 10-year lease term with annual, upward-only rent review in line with German consumer inflation.
The property comes with a 4.75% net initial yield.
The newly-built property is located in a "prime logistics location", Tritax EuroBox said, with "exceptional" links and high demand. The facility was developed by Dietz AG - the asset manager in Germany for Tritax EuroBox - which retains a "small" unspecified interest in the property.
"We are delighted with our ninth investment for Tritax EuroBox, bringing our total amount invested to over EUR600 million," Tritax EuroBox Fund Manager Nick Preston said. "This off-market acquisition is of a brand new, well specified, purpose-built big box logistics asset in a prime logistics location in Germany that benefits from excellent transport and infrastructure connectivity and strong supply/demand fundamentals."
"We expect this property to generate an attractive income return with good income growth potential," Preston added. "This is our third investment through our relationship with Dietz, which demonstrates the high-quality of their development assets in prime locations."
Shares in Tritax EuroBox were 0.4% lower at 150.10 pence in London on Friday.
Tritax Eurobox (EBOX)