Last checked at 
23 Nov 2018 07:00
Acquisition of French asset
Aberdeen Standard European Logistics Income PLC (LSE: ASLI) (the "Company")
LEI: 213800I9IYIKKNRT3G50
23 November 2018
PURCHASE AGREEMENT SIGNED FOR THE ACQUISITION OF WAREHOUSE IN MEUNG-SUR-LOIRE, FRANCE, FOR A TOTAL VALUE OF €23.5 MILLION
The Board is pleased to announce that the Company has exchanged conditional contracts to acquire a high quality logistics warehouse located in Meung-sur-Loire, France for €23.5 million, providing a net initial yield of 4.7%. Contracts are expected to become unconditional by no later than 22 January 2019. The property is fully let to Office Depot France until 2026.
The tenant, Office Depot France (part of the Aurelius Group) is a leader in the office supplies market and has operated in France since 1995, employing over 1,000 staff across 60 stores, online and B2B. Recent consolidation and streamlining of the business has resulted in all of the company's French business being based out of Meung-sur-Loire.
In terms of location, the warehouse is situated 27km south west of Orleans at Parc Synergie, which serves Paris, Central France and the South of France via a very effective road and rail network. Parc Synergie is majority-owned by Prologis and is an established logistics location with a number of other well-known logistics companies on site such as DHL, ID Logistics, and XPO Logistics. Its proximity to the strategic logistics 'Dorsale' corridor that links Lille-Paris-Lyon-Marseille means the location also serves international, as well as national, distributers.
The building itself has a total lettable area of 30,180 square metres and is very well maintained to modern specifications with a good office to storage logistics ratio and flexibility as to the numbers of occupiers.
The Manager believes that this freehold warehouse will generate a durable income stream thanks to its central location within France, good building specifications and long lease with a strong covenant tenant and its versatility in terms of potential use together with the potential for expansion and further development.
In addition, the Company will shortly be uploading a presentation to its website www.eurologisticsincome.co.uk with details of the portfolio assets purchased to date and further details of the investment manager's views on the outlook for the European logistics sector.
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 £187.5 million. 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 and a total return of 7.5% per annum (both in Euro terms based on the initial launch price). The Company intends to declare dividends on a quarterly basis in Sterling. A second interim dividend of 1.0p per Ordinary share will be paid on 20 December 2018 to Ordinary shareholders on the register on 30 November 2018 (ex-dividend date of 29 November 2018).
Further information on Aberdeen Standard European Logistics Income PLC is available at www.eurologisticsincome.co.uk