Long-term Lease Renewal - La Creche, Niort, France
16 February 2023
LEI: 213800I9IYIKKNRT3G50
abrdn European Logistics Income plc
ASLI completes 4,000 sqm long-term lease renewal in Niort, France, 20% ahead of ERV
abrdn European Logistics Income plc (the "Company" or "ASLI"), the Company which invests in high quality European logistics real estate, has agreed a 3,939 sqm lease renewal with Dachser France, an international provider of transport and logistics solutions, at its urban logistics freehold property at La Crèche, near Niort, France.
Dachser has signed a 9.5-year lease, effective January 2023, which will generate annual contracted rent of €532,900, equating to €135.30 per sqm, 20% ahead of the 30 September 2022 ERV and 3% ahead of the previous passing rent. The lease now provides for annual uncapped French ILAT indexation with increased payments commencing 2025 and backdated to January 2023. The Company has agreed a rent-free period and committed to a small capex spend to improve the building management system and provide energy efficient external LED lighting.
Built in 2014, the single tenant property is strategically located 10 kilometres from the centre of Niort. It benefits from its proximity to the A10 motorway connecting to Bordeaux and Paris and sits on 44,000 sqm of land (9% site coverage), providing good opportunities for future expansion.
Troels Andersen, Fund Manager for ASLI, commented: "Despite the challenging economic backdrop, occupier demand for affordable, well-located warehouse space in our preferred geographies remains robust. Furthermore, the annual CPI indexation across the majority of our leases should drive material income uplifts and remains a key differentiator for the Company. Maintaining our important sustainability approach, we are increasingly agreeing green leases with our tenants, which require both parties to work together to improve an asset's environmental credentials."
The Company expects to announce its Q4 2022 unaudited net asset value next week.
For further information please contact:
abrdn +44 (0) 20 7463 6000
Luke Mason
Gary Jones
Investec Bank plc +44 (0) 20 7597 4000
Denis Flanagan
David Yovichic
FTI Consulting +44 (0) 20 3727 1000
Dido Laurimore
Richard Gotla
James McEwan
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