abrdn Euro Logistics - Property Acquisition – Dachser France

abrdn European Logistics Income

01/08/2022 07:00

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RNS Number : 3400U  abrdn European Logistics Income plc  01 August 2022

1 August 2022

LEI: 213800I9IYIKKNRT3G50

 

abrdn European Logistics Income plc

 

ASLI  furthers exposure to high growth logistics sector with French
acquisitions

 

abrdn European Logistics Income plc (the "Company" or "ASLI") has completed on
the previously announced acquisition of two logistics properties, in Bordeaux
and Niort, France. The aggregate purchase price of circa €23 million
reflects a net initial yield of 4.0%.

 

Both properties are leased to Dachser France, an international provider of
transport and logistics solutions, on leases which provide annual indexation,
whilst they also offer medium term asset management opportunities due to low
site coverage.

 

Built in 2005, the Bordeaux urban logistics asset totals 6,504 sqm and sits on
a total plot size of c. 29,000 sqm, (22% site cover). It is located 8 km from
the centre of Bordeaux, one of France's most populated cities, alongside the
A630 ring road, offering fast access to the area's major arterial routes,
including the A10 & N10 to Paris, the A89 to Lyons and the A63 to the
Spanish border. A WAULT of 9.5 years, and annual ILAT indexation, provides
attractive long term income.

 

Built in 2014, the Niort property totals 3,939 sqm, on 44,000 sqm of land (9%
site cover). Located 10 kilometres from the centre of Niort, which has a
population of 177,000, it benefits from its proximity to the A10 motorway
connecting to Paris and Bordeaux. The lease is also subject to annual
indexation.

 

The Company expects to complete on the purchase of a third freehold building
in France in Q3. A further update will be provided in due course.

 

The Company also announces that it has secured a debt facility against Phases
1 to 3 of its Spanish Madrid portfolio. A three year term has been agreed with
ING Bank at an all-in interest rate of 2.57%. The new facility provides
additional flexibility around the Company's debt strategy, and results in an
LTV of 30% (using the 31 March 2022 portfolio valuation).

 

Evert Castelein, Fund Manager for ASLI, commented: "These are tenant critical,
well-located assets close to major metropolitan areas in France, one of our
high conviction geographies. Both offer excellent road connectivity to Paris
and across the country, whilst adding another strong financial covenant.

 

"Notwithstanding the benefit of indexation, these warehouses also offer
attractive longer term asset management potential given the large plot sizes
and low site cover. The portfolio now totals 26 properties, with our brand new
Madrid Phase Four Amazon hub completed earlier this month and fully income
producing, adding further diversification to our portfolio."

 

The Company expects to announce its Q2 unaudited net asset value in August
2022.

 

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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