Tritax EuroBox plc ("Tritax EuroBox" or the "Company") (ticker: EBOX (Sterling) and BOXE (Euro)), which invests in high-quality, prime logistics real estate strategically located across continental Europe, announces that it has agreed to acquire land and fund the development of an €117.91 million asset in a prime location in the Rhine-Ruhr region in Germany, which is pre-let to the Rhenus Warehousing Solutions SE & Co KG ("Rhenus"), one of the leading global logistics service providers (the "Bönen Proposal").
The property will comprise a single building with a total gross internal area of approximately 66,065 sqm comprising six purpose-built logistics units located in the heart of the prime logistics location in the Rhine-Ruhr region. The development is expected to be completed in February 2023.
This transaction is structured as a forward funding development opportunity, where the Company will buy the land initially and then fund the construction of the building under a fixed price contract. The total cost of the land and development expenditure is capped at €117.9 million. From receipt of the building permit expected by February 2022 and during the 12-months construction phase, the Company will receive from the developer an income return equivalent to the agreed net initial yield.
The optimal location of Bönen in the Rhine-Ruhr metropolitan region allows the asset to access motorway infrastructure and be a part of the most important logistics hub in Europe, where one quarter of all logistics centers in Germany are located.
This project meets several of the Company’s sustainability objectives via redevelopment of a brownfield site to a DGNB Gold in use sustainability standard.
The entire building is pre-let on a 15-year lease to Rhenus, commencing on practical completion expected in February 2023. The lease will generate a total annual rent of approximately €4.1 million.
The development cost of €117.9 million reflects a net initial yield of 3.5% based on the income from the agreed upon lease.
This acquisition forms part of the deployment strategy for Tritax EuroBox following the successful equity raise in September 2021.
The Company has entered into a conditional contract with several entities including Dietz Aktiengesellschaft, all part of the Dietz group of companies (collectively referred to as "Dietz AG") in respect of the Bönen Proposal.
Alina Iorgulescu, Assistant Fund Manager of Tritax EuroBox, commented:
“The Rhine-Ruhr region of Germany is the largest population centre in the country and is an area which benefits from excellent transport connectivity and strong supply / demand fundamentals. This is the tenth German investment in the Tritax EuroBox portfolio, bringing our total amount invested in the country to just over €700 million, providing significant critical mass in the most important logistics market in Europe. This off-market funding, developed by our long term development partner Dietz AG, is at an attractive yield which also offers the opportunity to capture the rental growth evident in the prime German logistics market.”
Related Party Transaction and General Meeting
As Dietz AG is considered as a related party to the Company under the Listing Rules, the Bönen Proposal is subject to shareholder approval. A circular containing further information about the Bönen Proposal as well as the Gelsenkirchen Proposal announced by the Company on 22 October 2021, and a notice convening a General Meeting of the Company at which shareholders will be asked to vote in favour of resolutions to approve the proposed transactions will be posted to shareholders as soon as practicable. Further details of the Bönen Proposal, including the key commercial terms, are set out in the appendix to this announcement.
Notes
1 Property price. The Company will acquire the asset by way of a share deal, purchasing 89.9% of the shares in Dietz 23. Grundbesitz GmbH.
For further information please contact:
Tritax Group
+44 (0) 20 8051 5070
Nick Preston
Mehdi Bourassi
Jo Blackshaw (Investor Relations)
Maitland/AMO (Media inquiries)
James Benjamin
+44 (0) 7747 113 930
tritax-maitland@maitland.co.uk
