Last checked at 
1 Nov 2018 07:00
Acquisition of Sixth Asset post IPO and Completion on Third Asset
Aberdeen Standard European Logistics Income PLC (LSE: ASLI) (the "Company")
LEI: 213800I9IYIKKNRT3G50
1 November 2018
PURCHASE AGREEMENT SIGNED FOR THE ACQUISITION OF SIXTH ASSET LOCATED IN OSS, THE NETHERLANDS, FOR €15.7 MILLION
The Board is pleased to announce that the Company has exchanged contracts to acquire a new development in Oss, the Netherlands, for a purchase price of €15.7 million providing a net yield of 5.3%. The agreement with developer Heembouw Breda B.V is structured as a forward funding deal with a 5.5% coupon rate. The development will start in November 2018 with an expected delivery date of 1 July 2019.
The freehold property, located on the Vorstengrafdonk business park in Oss, itself a new logistic / industrial development, comprises approximately 10,200 square metres warehouse space with associated mezzanine and office space with 160 parking places. Road accessibility is excellent, being at the junction of main motorways A50, A59 and N329, and the total plot size is 27,900 square metres. The space will feature floor load capacity of 5,000 kg/sqm, free height of 10 metres, 5 overhead doors and the option to create 8 to 10 additional loading docks. Additional space gives an option to extend in the future.
Orangeworks Group B.V., a company specialising in machinery for the food industry, has agreed a 15 year triple net lease, with no breaks and full CPI indexation, to commence on completion of the project to consolidate all operations in one location.
Oss itself is strategically located in the province of North-Brabant between the world renowned ports of Rotterdam and Antwerp and close to the Ruhr area. These surroundings make Brabant hugely important for the logistics sector, ideal for transhipment, assembly and transit from and to the European hinterland. The cities of Den Bosch and Nijmegen are also nearby, just 15 kilometres away. Oss has a well-diversified economy and is strong in the manufacturing, pharmaceutical, automation and logistic sectors. It is easily accessible by road (A50, A59 and N329) and water. There is a small container and bulk terminal in the north connected to the river Maas which functions as an extended gate for the Rotterdam ECT Delta Terminal.
COMPLETION OF AVIGNON ACQUISITION FOR €44.5 MILLION
The Company is also pleased to announce that it has completed the acquisition of the previously announced new freehold distribution warehouse in France, for a net value of €44.5 million.
This newly built climate controlled facility in Noves, near Avignon, with an approximate area of 28,570 square metres sits in the south of the French corridor in the Provence region at the crossroads of the A7 and A9 motorways and is 7km from Avignon airport. The region is highly ranked in France for the production of fresh flowers, fruit and vegetables. The warehouse is very well positioned for food distribution with Carrefour, Aldi and Système U already operating distribution centres in the area.
This income producing asset has been fully let to Biocoop, a French supermarket operator, with a 12 year lease and annual indexation. It consists of four cells with a total area of approximately 28,570 square metres, with 33% of the floor space given over to cold storage. Biocoop, founded in 1986, is a leader in organic food distribution and known for its fair trade products and wide choice of eco-products and cosmetics.
Avignon is a strategic location for Biocoop which operates a unique multi-professional cooperative model. As at the end of August 2018 its network operated over 550 organic stores promoting local production to limit transport and support local economies. The property, developed by Barjane and which provides the versatility required to move to a multi-tenant scenario if ever required, has been labelled "HQE Excellent" with a high specification agreed with Biocoop which itself looks to limit environmental impact.
The tenant has signed a fully indexed 12 year lease of which 9 are firm. Net initial yield is expected to be in the region of 5.0% reflecting agreed passing rent which will be subject to annual indexation. Covenant strength is very strong. Additional secured cash flow will be generated from solar panels placed on the roof with an option of a photovoltaic plant alongside the property.
Evert Castelein, the Company's Fund Manager, commented:
"We are extremely pleased to have completed on Avignon and in addition to announce this premium development opportunity in Oss which we expect to close in July 2019. We are confident that we can generate a solid and sustainable income stream from our portfolio assets. We are seeing very strong demand in the market for modern, best-in-class logistics facilities.
Our pipeline of investment opportunities remains strong across Europe. A number of further properties are undergoing due diligence or have price agreements in place and announcements are expected shortly. Despite the continued tightening of logistics yields in many countries and increasing investor demand in the European logistics space, we continue to build a really well-diversified portfolio of very high quality European logistics properties with a view to being fully invested within twelve months of launch."
For further information:
Aberdeen Fund Managers Limited
0207 463 6000
William Hemmings
Gary Jones
Jonathon McManus
Canaccord Genuity Limited
0207 523 8000
Will Barnett
Neil Brierley
Dominic Waters
David Yovichic
Notes to Editors
Aberdeen Standard European Logistics Income PLC is a UK investment trust with a premium listing on the Main Market of the London Stock Exchange. The Company invests in European logistics real estate to achieve its objective of providing its shareholders with a regular and attractive level of income return together with the potential for long term income and capital growth. The Company aims to invest in a portfolio of assets diversified by both geography and tenant throughout Europe, predominantly targeting well-located assets at established distribution hubs and within population centres.
The Company launched on 15 December 2017 raising gross proceeds of £187.5m. Portfolio management services are undertaken by Aberdeen Asset Managers Limited, part of the Aberdeen Standard Investments group of companies.
The Aberdeen Standard Investments Real Estate team's extensive regional presence (with 25 offices in 14 countries across Europe) gives it very strong local insight and market knowledge with access to a wide variety of investment opportunities, both on and off market. As investment manager, it is therefore well positioned to identify assets suitable for the Company's portfolio with transaction managers on the ground able to source and complete deals.
Aberdeen Standard Investments is a brand of the investment businesses of Aberdeen Asset Management and Standard Life Investments.
The Company is targeting (on a fully invested and maximum gearing basis) an annual dividend yield of 5.5% per Ordinary Share (in Euro terms) and a total return of 7.5% per annum (also in Euro terms). The Company intends to declare dividends on a quarterly basis in Sterling.
Further information on Aberdeen Standard European Logistics Income PLC is available at www.eurologisticsincome.co.uk