Last checked at 
20 Feb 2019 08:19
Aberdeen Standard European Logistics Income PLC (LSE: ASLI) (the "Company" or "ASLI")
LEI: 213800I9IYIKKNRT3G50
20 February 2019
ACQUISITION OF LOGISTICS ASSET LOCATED IN KRAKOW, POLAND FOR €24.5 MILLION
The Company is pleased to announce that it has signed an agreement to acquire a freehold logistics warehouse in Krakow, Poland for a net value of €24.5 million providing a net initial yield of 6.8%. The vendors are Panattoni and Marvipol, well-known international real estate developers specialising in logistics. The transaction is expected to close in early March 2019.
Built in 2018, the asset is a freehold, multi-let, facility located in an established logistics area alongside the A4 motorway giving access to Germany, Wroclaw and Silesia and also benefitting from its proximity to Krakow and Katowice international airports. The building provides 31,000 square metres of warehousing and 4,000 square metres of office space with ample loading docks, a free height of 10 metres and a floor load capacity of 5,000 kilograms per square metre. The flexible structure allows for future reconfiguration if required.
The warehouse has an attractive income profile. It is fully leased to nine tenants, all with CPI indexed leases and with a weighted average unexpired lease term of 4.6 years (calculated as at 1 March 2019). Currency risk is limited with all rents payable in Euros. Tenants include packaging and transportation company DS Smith and Lynka, a leading provider of textile printing services.
Krakow is the second largest city in Poland with approximately 760,000 inhabitants and is characterised by a relatively affluent population, the dominance of added value industries and a strong education infrastructure and business friendly policies. It is located in the south near the border with the Czech Republic and is, after Warsaw, considered to be Poland's most important and fastest growing economic centre. Warehousing remains more scarce with an undersupply of logistics assets with the scarcity of available land due to the hilly landscape, fragmented ownership and often complex permitting.
The Polish logistics market is strong and currently ranked third in Europe in terms of new developments benefitting from being the largest economy within the Central and Eastern European block with a lower cost labour force.
Evert Castelein, the Company's Fund Manager, commented:
"We expect this newly built high yielding warehouse to be an excellent addition to ASLI's property portfolio. Growing demand for logistics space in one of the most affluent urbanised areas of Poland together with the diversified income stream make this a very attractive asset."
For further information:
Aberdeen Standard 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.