Continental European logistics real estate specialist Tritax EuroBox has acquired a logistics warehouse at Peine, near Hannover, Germany in a share deal worth €81.6 mln, reflecting a net initial yield of 4.8%.
The 92,500-m2 property is let to Action Logistics Germany, a subsidiary of non-food discount retailer Action, with a term of 11 years with three further five year renewal options. The majority of the rent is subject to annual upward only indexation.
The asset, which is being developed by Dietz, is targeted for completion next month.
The acquisition is Tritax Eurobox's first from the Dietz Group, which in Germany acts as asset manager for the firm and also provides access to its development pipeline. Dietz has retained a small interest in the asset.
Knight Frank acted for the buyer.
Nick Preston, fund manager of Tritax EuroBox, commented: 'This is our fifth investment for Tritax EuroBox since IPO in July 2018, bringing the total amount invested to over €440 mln. This off-market acquisition at an attractive yield of a brand new, purpose-built asset, is in a prime logistics location in Germany that benefits from excellent transport connectivity and strong supply/demand fundamentals.'