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17 November 2021
Completion of a New Green Lease in Nivelles, Belgium to Match Supermarkets
Tritax EuroBox plc ("Tritax EuroBox" or the "Company") (ticker: EBOX (Sterling) and BOXE (Euro)), which invests in high-quality, prime logistics real estate strategically located across continental Europe, announces that it has agreed a new lease on the vacant unit at its prime logistics asset in Nivelles to Associated Retail SA (trading as "Match Supermarkets"), the convenience supermarket group located across Belgium, Luxembourg and northern France.
The Nivelles property, comprising two separate logistics units, was acquired by the Company in January 2021, immediately after completion of construction, with a gross internal area of 34,119 sqm, (with unit 1 comprising 18,147 sqm and unit 2 comprising 15,972 sqm) and an eaves height of 12 metres. The Company acquired the asset with unit 1 already leased to Medi-Market Group S.A. on a nine-year lease term without a break at a rent, subject to annual indexation, of €803,000 per annum reflecting €44.3 psm.
At acquisition, unit 2 benefited from a 12-month rental guarantee from the purchase date. The Company has now let unit 2 to Associated Retail SA, part of the Louis Delhaize Group, with a guarantee from Delfipar SA. The rent will be subject to annual uplifts in line with the Belgian Healthcare Index.
The new lease has been agreed for a nine-year term from 16 November 2021 at an initial annual rent of €755,500 pa, reflecting a headline rent of €47.3 psm. This rental level, on a net effective basis is c. 8% above the level of the existing lease for unit 1 and the current rental guarantee.
Sustainability is fundamental to the Company's ability to create long-term value for stakeholders. The Nivelles property includes a range of sustainability measures such as LED lighting with motion sensors, insulated exterior walls to achieve good energy performance, cycle storage and a cycle path, along with installation of solar panels to provide tenants with a renewable power source. The Company has negotiated a "Green Lease" with Match Supermarkets to include specific clauses in the lease to ensure the commitment of the tenant to use the building in a sustainable way, sharing data on energy, water consumption, waste management and recycling.
Securing this letting ahead of the expiry of the rental guarantee further demonstrates the strength of the Company's properties and locations. Following the completion of this new lease, the property is now fully let.
Freddie James, Assistant Fund Manager of Tritax EuroBox, commented:
"This letting provides further tenant diversification across our portfolio and validates our strategy of buying high quality, sustainable assets in prime logistics locations. These locations experience strong occupier demand and allow us to capture the rental growth evident in these markets and enhance shareholder value. This also demonstrates the value of the Company's expertise and local presence through its market-leading asset managers in Belgium, Logistics Capital Partners. We look forward to a long and productive relationship with Match Supermarkets in Nivelles."
For further information please contact:
Tritax Group
+44 (0) 20 8051 5070
Nick Preston
Mehdi Bourassi
Jo Blackshaw (Investor Relations)
Maitland/AMO (Media inquiries)
James Benjamin
+44 (0) 7747 113 930
[email protected]
The Company's LEI is: 213800HK59N7H979QU33.
Notes:
Tritax EuroBox plc invests in and manages a well-diversified portfolio of well-located Continental European logistics real estate assets that are expected to deliver an attractive capital return and secure income to shareholders. These assets fulfil key roles in the logistics and distribution supply-chain focused on the most established logistics markets and on the major population centres across core Continental European countries.
Occupier demand for Continental European logistics assets is in the midst of a major long-term structural change principally driven by the growth of e-commerce. This is evidenced by technological advancements, increased automation and supply-chain optimisation.
The Company's Manager, Tritax Management LLP, has assembled a full-service European logistics asset management capability including specialist "on the ground" asset and property managers with strong market standings in the Continental European logistics sector.
Further information on Tritax EuroBox plc is available at www.tritaxeurobox.co.uk
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