A new asset in the Netherlands is due to be bought with the bank investment trust fund for 24 million euros (£21.4 million). The logistics warehouse in ‘s-Heerenberg will provide an expected net initial yield of 5%, with the transaction to be completed next month.
The warehouse is a freehold facility with a cross dock and 40 loading bays covering almost 23,000 sq m. The total site size of 45,000 sq m offers potential for expansion. It is fully leased to third-party logistics operator JCL Logistics Benelux BV, a wholly owned subsidiary of JCL Switzerland AG, for the next 12 and half years. JCL’s clients produce bikes and associated parts in Asia and the USA.
‘s-Heerenberg is near the German border and has good accessibility to the Emmerich barge terminal and A12 and A3 motorways.
“I am very happy with the quality portfolio that we have built up across five countries in Europe which reflects a highly sustainable indexed income stream which helps protect against inflation. With the additional competitive bank funding in place our asset-level gearing will sit at or close to 35% on completion of the remaining forward funded project. Investment demand in the logistics sector remains strong. Based on healthy fundamentals we believe that the medium to long term outlook for the sector remains very favourable,” said Fund manager Evert Castelein.
“Despite some tailwinds from economic output in certain areas, the structural shifts in consumption patterns and overall demand drivers remain supportive, while construction levels are relatively low. We continue to see a healthy pipeline of deal flow which we apply our stringent quality criteria against,” Evert added.
The €198 million Standard Life Aberdeen-run trust has also completed the acquisition of the newly built 35,000 sq m warehouse in Zeewolde, Netherlands, from developer Borghese for €29.25 million (£26 million) providing a net initial yield of 5%. It had been pre-let to heating component supplier VSH Fittings BV on a 15 year lease from this month. The warehouse is close to the A6, A27 and A28 motorways.
Moreover, the trust secured long term financing on its Dutch properties in Ede, Oss and Waddinxveen. The secured loan facility with Berlin Hyp is for €37.7 million and fixed for six years.