Abrdn Euro Log Regulatory News (ASLI)

abrdn European Logistics Income plc LEI: 213800I9IYIKKNRT3G50

Continued Sales Momentum and Disposal Process Update

-17 of the original 27 assets now sold, generating over €320 million in gross sales proceeds-

6 August 2025 - abrdn European Logistics Income plc (the "Company"), which is in shareholder-approved managed wind-down, announces the completion of a further asset sale in Zeewolde, the Netherlands.

Sale of warehouse in Zeewolde, Netherlands

The Company has completed the disposal of its warehouse in Zeewolde, the Netherlands, for approximately €27.2 million, representing a 2.5% discount to the Q1 2025 valuation.

The freehold property, constructed in 2019, comprises 35,351 square metres of net leasable area and is let to Aalberts Integrated Piping Systems B.V., a wholly-owned subsidiary of Aalberts Industries N.V., on a long-term lease. The tenant specialises in the manufacturing and distribution of industrial valve products and fittings.

Continued Sales Progress

This transaction further progresses the shareholder-approved managed wind-down, with 17 of the original 27 assets in the Company's portfolio now sold, generating aggregate gross sales proceeds of over €320 million, prior to the repayment of associated debt.

Of the 10 remaining assets, three disposals are anticipated to complete in Q4 2025.

The final seven assets remain at various stages of the sales process, with further completions targeted from Q4 2025 onwards.

Further Capital Distribution

On 16 July 2025, following the completion of asset disposals in Germany and the Netherlands, the Board announced a second return of capital to shareholders of approximately £49.5 million, equivalent to 12.0 pence per Ordinary Share. This distribution is scheduled to be paid on 13 August 2025 via the previously approved B Share scheme.

Following the completion of the Gavilanes portfolio sale, announced on 31 July, and this latest disposal in Zeewolde, the Company intends to make a further capital distribution of at least £50 million in September 2025, also by way of the B Share scheme. Further details, including the exact amount and timetable, will be provided in a separate announcement in due course.

Debt Financing

As at 31 March 2025, the Company's bank debt facilities totalled €218 million. The previously announced Gavilanes portfolio sale enabled the immediate repayment of all outstanding debt provided by ING Bank totalling €77 million. Following the sale of the Zeewolde asset and previous repayments of associated asset level debt, the Company's total outstanding debt has been reduced further to €80.2 million. Remaining debt secured against individual assets is shown in the table below.

The Berlin Hyp loan of €34.3 million has now been extended by a further year with an end date of 6 June 2026, with no early repayment charges applicable in the event assets are sold before that date. The all-in rate, including the bank margin, increased from 1.35% to 3.3% and is now on a 3-month floating basis.

Capital Gains Tax

Latent capital gains tax (CGT) liabilities may exist for assets that were acquired via share deal structures. These liabilities arise from historic, unrealised gains embedded within the acquired entities prior to acquisition and are separate from any CGT liabilities arising on gains made during the Company's ownership period.

In accordance with International Financial Reporting Standards (IFRS), where an asset is acquired via a share deal, potential latent CGT liabilities are not recognised in the Company's financial statements, as they relate to gains generated within the SPVs prior to acquisition. For these assets, where the valuation exceeds their carried book cost, only the CGT liability attributable to gains made during the Company's holding period is reflected in the NAV.

The Company's reported NAV inclusive of costs reflects all known and quantifiable transaction costs, such as legal and agent fees, including CGT attributable to gains made during the Company's holding period. In line with IFRS, the Company's reported NAV, whether including or excluding costs, does not include provision for uncrystallised latent CGT liabilities, which are only recognised when crystallised. Realisation of such liabilities is contingent on future events, most notably the disposal structure (whether an asset sale or share sale) and the commercial negotiation with the buyer, including any agreement on the sharing of latent CGT exposure.

As set out in the 31 July 2025 announcement regarding the disposal of the Spanish Gavilanes portfolio, the transaction was structured as a share sale, enabling an efficient and timely return of capital to shareholders. The SPVs were acquired by P3, a European logistics investor and developer, following a competitive two-round sale process involving multiple bids from active logistics buyers. While no CGT was crystallised, the agreed pricing reflected the buyer assuming responsibility for the latent CGT liability within the acquired entities.

Within the remaining portfolio, certain assets acquired via share purchases continue to carry latent CGT exposure, which is not recognised in the NAV. The potential CGT impact from future sales of these assets remains uncertain, as it will depend on the structure and terms of each transaction. However, if all remaining disposals were structured as direct asset sales, a latent CGT impact of approximately 1-2 pence per share on the NAV could arise. This estimate is illustrative only, and the actual outcome will depend on several factors, including the final transaction structure, pricing and any agreement regarding tax exposure. The Company will continue to provide updates as further disposals are completed.

Details of the Company and its property portfolio may be found on the Company's website at: http://www.eurologisticsincome.co.uk

For further information please contact:

Aberdeen +44 (0) 20 7156 2382

Ben Heatley

Investec Bank plc +44 (0) 20 7597 4000

David Yovichic

Denis Flanagan

FTI Consulting +44 (0) 20 3727 1000

Dido Laurimore

Richard Gotla

Oliver Parsons