Tritax EuroBox secures new lease in Italy
Tritax EuroBox secures a new lease of speculatively developed asset in Italy
Tritax EuroBox plc (the "Company"), which invests in Continental European logistics real estate assets, has agreed a second lease at its two-unit asset in Settimo Torinese, a prime logistics location near Turin. The new six-year lease has been secured with the same leading Italian logistics provider which signed a lease for the other unit in August 2023.
Summary
· The letting is for the second unit (14,197 sqm) at the Company's 28,287 sqm two-unit development, well-located adjacent to the A4 'Turin-Trieste' motorway in Settimo Torinese, 14km east of Turin and 125km west of Milan.
· The six-year green lease includes a further six-year extension option and includes annually reviewed inflation-linked uplifts.
· The agreement of this second unit, to the same leading Italian logistics specialist which leased the other half of the property, means the asset is now fully let and de-risks income previously subject to rental guarantees.
· The rent agreed is 8% above both the Estimated Rental Value (ERV) as at March 2023 and the rent agreed for the first unit, which was signed in August 2023 and commenced on 1st October.
· The building includes a roof-mounted solar PV scheme and other sustainability features that reduce its environmental impact. These support the targeted BREEAM Very Good rating.
· Brownfield regeneration of a former tyre manufacturing warehouse, with the completed development improving the local environment and providing new employment opportunities for local communities.
Background
This speculative forward funding development was acquired by the Company in June 2021 from LCP, with each unit subject to a rental guarantee of 12 months' rent from Practical Completion in July 2023. Arranged as two units, with c.6% office content and a design which offers further flexibility with roof-mounted solar PV scheme options.
Company commentary
James Charlesworth, Asset Management Director of Tritax EuroBox plc, commented:
"This letting provides further evidence of the successful delivery of our strategy of purchasing high-quality and sustainable buildings, developed in sought-after locations, close to major population centres and with easy access to great transport links. Securing this lease ahead of the rental guarantees expiry to an existing strong customer, further demonstrates the attractiveness of our assets, the continuing good occupier demand in Italy and our ability to add long-term rental income to the portfolio."
Further information
Tritax EuroBox plc
+44 (0) 20 8051 5070
Phil Redding - CEO
Mehdi Bourassi - CFO
Charles Chalkly - Investor Relations
Kekst CNC (Media enquiries)
Tom Climie / Guy Bates
+44 (0) 7760160248 / +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.
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