Waddinxveen Extension and Lease Signing
10 August 2022
LEI: 213800I9IYIKKNRT3G50
abrdn European Logistics Income plc
Waddinxveen warehouse extension completion and new letting at Madrid site
abrdn European Logistics Income plc (the "Company" or "ASLI") announces that it has signed the purchase agreement for the acquisition of the recently completed warehouse extension at Waddinxveen, the Netherlands, for a total net purchase price of €4.9 million.
The Company exercised its right of refusal over this development located directly adjacent to the existing warehouse bought in 2018. This land, owned by and developed with our tenant Combilo, has provided an additional c. 2,400 sqm of cooled warehouse space and 157 sqm of office space. The extension will allow Combilo to service its growing client base, including a Swedish supermarket chain. The lease runs concurrent with the original, with over 11 years remaining, and will generate additional rent of c. €250,000 per annum, reflecting a yield of 5%. The extension complies with the latest energy neutrality standards in the Netherlands and includes 16 rooftop solar panels, resulting in an A+++ energy rating.
This asset management initiative is expected to be immediately value accretive and enhances the income producing qualities of this modern, well located asset.
In addition, the Company is pleased to announce that it has agreed a new 5 year lease with ADER at Unit 3, part of Phase II at its Gavilanes site, Madrid. ADER provides distribution services to companies in the freight and logistics sector and is consolidating its operations in the Gavilanes area with the leasing of this second, 7,375 sqm building. The annual contracted rent of almost €470,000 per annum is fully CPI indexed and in line with expectations.
Evert Castelein, Fund Manager for ASLI, commented: "Supporting our tenants as they expand is a key part of our strategy. This is another example of how flexibility and the option to extend buildings within our portfolio can create additional value over the medium term."
"The new lease with ADER not only improves the portfolio's income characteristics, but also underscores the desirability of the Gavilanes assets, which offer access to c. six million people across the wider Madrid area."
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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