Tritax EuroBox secures lease
re-gear, new lease and solar PV contract in
Belgium
Tritax EuroBox plc (the "Company"),
which invests in Continental European logistics real estate assets,
has agreed a lease re-gear, a new lease and associated solar PV
Power Purchase Agreement (PPA) at Logistics Park Bornem, Belgium,
in conjunction with its local asset management partner, Logistics
Capital Partners (LCP). The re-gear and new lease are both
eight-year, inflation-linked leases and have been signed, together
with the PPA, with an existing customer, which is a leading global
pharmaceutical and medtech company.
Summary
· The lease re-gear is for unit B (13,945 sqm) and the new lease
is for unit C (14,935 sqm) at the Company's 45,850 sqm three-unit
development in Bornem, which is well-located 34km both from the
Port of Antwerp and Brussels.
·
The unit B re-gear extends the
unexpired lease term to August 2032 from August 2027, with a tenant
break option in August 2030. The rent remains at the passing rack
rented level.
· The new lease
on unit C is based on the same terms as unit B with the rent
subject to an open market review (capped at 20% uplift) 12 months
from the commencement of the lease. A surrender premium has also
been agreed with the former tenant of unit C.
· Both leases benefit from 100% inflation indexation, which will
be reviewed annually, and include Tritax EuroBox Green Lease
clauses.
· A new PPA for both units consolidates the income produced by
the units' solar PV scheme, which have a combined generating
capacity of 1.35MWp. This will benefit both the Company and the
customer by improving the current solar-related income on the
Logistics Park for the Company as well as creating cost savings for
the tenant and a positive environmental impact by reducing
CO2 emissions.
Background
The asset was acquired by the
Company in October 2018, with LCP appointed as the Company's
development and asset manager partner for the park. The estate is
strategically located in an established industrial location within
the Belgium 'Industrial Golden Triangle', just off the N19 dual
carriageway and 10km from the main A12 motorway, which links
Brussels and Antwerp. Unit B was built in 2008 and is let to a
multinational pharmaceutical and medtech company.
Unit C was developed with LCP in
2021 and leased to an online grocery retailer. The leasing
opportunity follows the tenant's decision
to consolidate operations back to their headquarters in The
Netherlands a year ahead of their break date. The customer in
unit B saw the potential to expand into the
neighbouring unit, enabling them to efficiently consolidate their
operations at Bornem, a strategic location for them due to its
proximity to their main laboratory facility only 6km away. The new
letting benefits the Company by de-risking the upcoming break
clause.
Company commentary
James Charlesworth, Asset Management Director of Tritax
EuroBox plc, commented:
"This re-gear and new lease
underline our ability to support the growth ambitions of our
customer and secure long-term commitments to our well-located
assets. The agreement of a new PPA increases solar-related income,
with the inclusion of green clauses further enhancing the asset's
ESG profile. The multi-faceted agreement reflects our approach of
building long-term relationships with market-leading occupiers and
capturing additional income on our high-quality
parks."
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) 7760 160 248 / +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.