Tritax Euro.eur Regulatory News (BOXE)

Tritax EuroBox secures lease re-gear, new lease and solar PV contract in Belgium

Tritax EuroBox plc (the "Company"), which invests in Continental European logistics real estate assets, has agreed a lease re-gear, a new lease and associated solar PV Power Purchase Agreement (PPA) at Logistics Park Bornem, Belgium, in conjunction with its local asset management partner, Logistics Capital Partners (LCP). The re-gear and new lease are both eight-year, inflation-linked leases and have been signed, together with the PPA, with an existing customer, which is a leading global pharmaceutical and medtech company.

Summary

· The lease re-gear is for unit B (13,945 sqm) and the new lease is for unit C (14,935 sqm) at the Company's 45,850 sqm three-unit development in Bornem, which is well-located 34km both from the Port of Antwerp and Brussels.

· The unit B re-gear extends the unexpired lease term to August 2032 from August 2027, with a tenant break option in August 2030. The rent remains at the passing rack rented level.

· The new lease on unit C is based on the same terms as unit B with the rent subject to an open market review (capped at 20% uplift) 12 months from the commencement of the lease. A surrender premium has also been agreed with the former tenant of unit C.

· Both leases benefit from 100% inflation indexation, which will be reviewed annually, and include Tritax EuroBox Green Lease clauses.

· A new PPA for both units consolidates the income produced by the units' solar PV scheme, which have a combined generating capacity of 1.35MWp. This will benefit both the Company and the customer by improving the current solar-related income on the Logistics Park for the Company as well as creating cost savings for the tenant and a positive environmental impact by reducing CO2 emissions.

Background

The asset was acquired by the Company in October 2018, with LCP appointed as the Company's development and asset manager partner for the park. The estate is strategically located in an established industrial location within the Belgium 'Industrial Golden Triangle', just off the N19 dual carriageway and 10km from the main A12 motorway, which links Brussels and Antwerp. Unit B was built in 2008 and is let to a multinational pharmaceutical and medtech company.

Unit C was developed with LCP in 2021 and leased to an online grocery retailer. The leasing opportunity follows the tenant's decision to consolidate operations back to their headquarters in The Netherlands a year ahead of their break date. The customer in unit B saw the potential to expand into the neighbouring unit, enabling them to efficiently consolidate their operations at Bornem, a strategic location for them due to its proximity to their main laboratory facility only 6km away. The new letting benefits the Company by de-risking the upcoming break clause.

Company commentary

James Charlesworth, Asset Management Director of Tritax EuroBox plc, commented:

"This re-gear and new lease underline our ability to support the growth ambitions of our customer and secure long-term commitments to our well-located assets. The agreement of a new PPA increases solar-related income, with the inclusion of green clauses further enhancing the asset's ESG profile. The multi-faceted agreement reflects our approach of building long-term relationships with market-leading occupiers and capturing additional income on our high-quality parks."

Further information

Tritax EuroBox plc

+44 (0) 20 8051 5070Phil Redding - CEOMehdi Bourassi - CFO

Charles Chalkly - Investor Relations

Kekst CNC (Media enquiries)

Tom Climie / Guy Bates+44 (0) 7760 160 248 / +44 (0) 7581 056 415 tritax@kekstcnc.com

Notes:

Tritax EuroBox plc invests in and manages a well-diversified portfolio of Continental European logistics real estate. These assets fulfil crucial roles in logistics and distribution supply chains, and are located in established logistics markets near major population centres across core Continental European countries.

Our high-quality portfolio is highly sustainable, offers predictable and predominantly inflation-linked income and has opportunities for capital growth through active asset management. These attributes underpin our ability to generate attractive returns for Shareholders over the long term.

The Manager, Tritax Management LLP, has assembled a full-service, pan-European capability for the Company, combining in-house leadership and strategic expertise with close partnerships with leading European developers and asset managers.

The Manager comprises a skilled, diverse team of real estate professionals with expertise across investment, asset management, development, finance, business analysis, research and communications. This is supplemented with specialist, on-the-ground developers, and asset and property managers with strong market standings in the Continental European logistics sector.

Further information on the Company is available at: tritaxeurobox.co.uk

 The Company's LEI is: 213800HK59N7H979QU33.