Continental European logistics real estate specialist Tritax EuroBox has acquired a logistics warehouse from developer Dietz near Bochum, in the Rhine-Ruhr region of Germany, for €35.7 mln.
Tritax said that the price reflected a net initial yield of 4.9%.
The new property, purpose-built in January 2018, has a gross internal area of 36,400 m2 and is divided into four units, with an eaves height of 12 metres. It has significant yard area and parking, with around 58% site cover.
Tritax said that the investment was fully income producing and offered scope for value and income enhancing opportunities.
'We are delighted with this asset, our sixth investment for Tritax EuroBox plc since IPO in July 2018, bringing our total amount invested to just over €476 mln,' said Nick Preston, fund manager of Tritax EuroBox.
'The asset is in a prime logistics location in the Rhine-Ruhr region of Germany, the largest population centre in the country and an area which benefits from excellent transport connectivity and strong supply/demand fundamentals.'
One unit is leased to SVH Handels for a fixed term of seven years, with 6.4 years unexpired, while a second is leased to WM Group for a fixed term of five years, with 4.6 years unexpired.
The remaining vacant space, with a combined gross internal area of 17,664 m2, currently benefits from a five-year rental guarantee to the Company provided by Dietz, Tritax's asset manager in Germany.
This acquisition is the second for Tritax arising from its relationship with Dietz. Dietz has retained a small interest in the acquired asset.