Completion of 's-Heerenberg Logistics Acquisition
Aberdeen Standard European Logistics Income PLC (LSE: ASLI) (the "Company" or "ASLI")
LEI: 213800I9IYIKKNRT3G50
12 July 2019
COMPLETION OF 's-HEERENBERG (THE NETHERLANDS) LOGISTICS ACQUISITION FOR €24.0 MILLION, OSS HANDOVER AND DEBT FINANCING
's-Heerenberg
Following the announcement dated 17 June 2019, the Company is pleased to confirm that it has completed its acquisition of the freehold logistics warehouse in 's-Heerenberg, The Netherlands, for a net value of €24.0 million providing an expected net initial yield of 5.0%.
This is a freehold facility providing a high quality warehouse, cross dock and 40 loading bays covering almost 23,000 square metres. The total site size of 45,000 square metres offers expansion opportunities in the future.
The warehouse has an attractive income profile and is fully leased to third-party logistics operator JCL Logistics Benelux B.V., a wholly owned subsidiary of JCL Switzerland AG. The lease has a remaining term of 12.5 years and is fully CPI indexed. JCL has a long history in 's-Heerenberg and provides services to its clients who produce bicycles and associated parts in Asia and the USA.
's-Heerenberg itself is located close to the German border (Emmerich barge terminal) and has good accessibility to the A12 and A3 motorways with the A12 being the main connection between the port of Rotterdam and Germany. Other operators in the area include Main Freight and DSV.
Oss
The Company also announces that its remaining forward funded project in Oss, The Netherlands, built in conjunction with developer Heembouw Breda B.V., has now been handed over to the new tenant, Orangeworks, and is therefore now fully income producing. The purchase price of €15.7 million provides a net initial yield of 5.3%.
The freehold property, located on the Vorstengrafdonk business park in Oss, itself a new logistic / industrial development, comprises approximately 10,200 square metres of warehouse space with associated mezzanine and office space with 160 parking places. Road accessibility is excellent, being at the junction of main motorways A50, A59 and N329, and the total plot size is 27,900 square metres providing additional space for any plans to extend in the future.
Orangeworks Group B.V., a company specialising in machinery for the food industry, has agreed a 15 year triple net lease, with no breaks and full CPI indexation, and is seeking to consolidate all operations in this one location.
Oss is strategically located in the province of North-Brabant between the world renowned ports of Rotterdam and Antwerp and close to the Ruhr area. These surroundings make Brabant hugely important for the logistics sector, ideal for transhipment, assembly and transit to and from the European hinterland. The area is easily accessible by road and water with a small container and bulk terminal in the north connected to the river Maas which functions as an extended gate for the Rotterdam ECT Delta Terminal.
Financing
The Company is also pleased to announce that it has finalised and signed an agreement for long term financing on the 's-Heerenberg property. This secured loan facility arranged with Berlin Hyp for a total value of €8.0 million has been fixed for a six year term at an attractive all-in interest rate.
The Board keeps the level of borrowings under review and the aggregate borrowings will always be subject to the absolute maximum set at the time of the Company's launch, calculated at the time of drawdown for a property purchase, of 50 per cent. of gross assets. Following draw down of the remaining facilities overall asset-level gearing will sit at or around 35 per cent. of gross assets. This level may fluctuate as and when new assets are acquired until longer term funding has been established or whilst short term asset management initiatives are being undertaken.
Evert Castelein, the Company's Fund Manager, commented:
"I am pleased with this excellent addition to ASLI's property portfolio which takes the number of assets in the portfolio to eleven including the forward funded project in Oss which has just been handed over to the tenant. 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.
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. Despite some headwinds from economic output in certain areas, the structural shifts in consumption patterns and overall demand drivers remain very supportive, while construction levels are relatively low. We continue to see a healthy pipeline of deal flow with letters of intent signed over two new assets where we have recently been granted exclusivity.
The Company's announcement last week to raise additional capital by way of a placing, open offer and offer for subscription will allow us to continue the growth strategy as planned at the time of the IPO, diversifying the portfolio by asset and tenant and seeking to deliver income and capital growth for our shareholders."
For further information:
Aberdeen Standard Fund Managers Limited
020 7463 6000
Luke Mason
Gary Jones
Investec Bank plc
020 7597 4000
Sales
Dominic Waters
Will Barnett
Neil Brierley
Alice Johnson
Corporate
David Yovichic
Denis Flanagan
Notes to Editors
Aberdeen Standard European Logistics Income PLC is a UK investment trust with a premium listing on the Main Market of the London Stock Exchange. The Company invests in European logistics real estate to achieve its objective of providing its shareholders with a regular and attractive level of income return together with the potential for long term income and capital growth. The Company aims to invest in a portfolio of assets diversified by both geography and tenant throughout Europe, predominantly targeting well-located assets at established distribution hubs and within population centres.
On 18 June 2019, the Company's board of directors announced the publication of a circular convening a general meeting of the Company at which approval will be sought from shareholders for (a) an equity fundraising by way of a placing, open offer and offer for subscription of 100 million Ordinary Shares at a price of 98.75p per Ordinary Share and (b) the implementation of a 12-month share issuance programme.
A copy of the circular and associated prospectus can be found on the Company's website
(www.eurologisticsincome.co.uk/new-share-issue).
Expected Timetable
Record Date for entitlements under the Open Offer - 6.00 p.m. on 3 July 2019
Placing and Offer for Subscription opens - 5 July 2019
Latest time and date for receipt of completed Open Offer application forms - 11.00 a.m. 25 July 2019
Latest time and date for receipt of commitments under the Offer for Subscription - 11.00 a.m. 25 July 2019
Latest time and date for receipt of commitments under the Placing - 11.00 a.m. 26 July 2019
Announcement of the results of the Issue - 26 July 2019
Admission and commencement of dealings in Ordinary Shares issued - 8.00 a.m. 30 July 2019
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