REG - abrdn Euro Logistics - Continued Sales Momentum & Disposal Process Update

abrdn European Logistics IncomeAnnouncement

Wed 07:00

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RNS Number : 1257U  abrdn European Logistics Income plc  06 August 2025

abrdn European Logistics Income plc
LEI: 213800I9IYIKKNRT3G50

Continued Sales Momentum and Disposal Process Update

-17 of the original 27 assets now sold, generating over €320 million in
gross sales proceeds-

6 August 2025 - abrdn European Logistics Income plc (the "Company"), which
is in shareholder-approved managed wind-down, announces the completion of a
further asset sale in Zeewolde, the Netherlands.

Sale of warehouse in Zeewolde, Netherlands

The Company has completed the disposal of its warehouse in Zeewolde, the
Netherlands, for approximately €27.2 million, representing a 2.5% discount
to the Q1 2025 valuation.

The freehold property, constructed in 2019, comprises 35,351 square metres of
net leasable area and is let to Aalberts Integrated Piping Systems B.V., a
wholly-owned subsidiary of Aalberts Industries N.V., on a long-term lease. The
tenant specialises in the manufacturing and distribution of industrial valve
products and fittings.

Continued Sales Progress

This transaction further progresses the shareholder-approved managed
wind-down, with 17 of the original 27 assets in the Company's portfolio now
sold, generating aggregate gross sales proceeds of over €320 million, prior
to the repayment of associated debt.

Of the 10 remaining assets, three disposals are anticipated to complete in Q4
2025.

The final seven assets remain at various stages of the sales process, with
further completions targeted from Q4 2025 onwards.

Further Capital Distribution

On 16 July 2025, following the completion of asset disposals in Germany and
the Netherlands, the Board announced a second return of capital to
shareholders of approximately £49.5 million, equivalent to 12.0 pence per
Ordinary Share. This distribution is scheduled to be paid on 13 August 2025
via the previously approved B Share scheme.

Following the completion of the Gavilanes portfolio sale, announced on 31
July, and this latest disposal in Zeewolde, the Company intends to make a
further capital distribution of at least £50 million in September 2025, also
by way of the B Share scheme. Further details, including the exact amount and
timetable, will be provided in a separate announcement in due course.

Debt Financing

As at 31 March 2025, the Company's bank debt facilities totalled €218
million. The previously announced Gavilanes portfolio sale enabled the
immediate repayment of all outstanding debt provided by ING Bank totalling
€77 million. Following the sale of the Zeewolde asset and previous
repayments of associated asset level debt, the Company's total outstanding
debt has been reduced further to €80.2 million. Remaining debt secured
against individual assets is shown in the table below.

The Berlin Hyp loan of €34.3 million has now been extended by a further year
with an end date of 6 June 2026, with no early repayment charges applicable in
the event assets are sold before that date. The all-in rate, including the
bank margin, increased from 1.35% to 3.3% and is now on a 3-month floating
basis.

 

 Property           Country      Bank        Loan amount  End date      Interest        Bank margin

                                             Eur'000                    (incl margin)
 Avignon            France       BayernLB    22,000       12 Feb 2026   1.57%           1.00%
 Ede + Waddinxveen  Netherlands  Berlin Hyp  34,300       06 June 2026  3.30%           1.32%
 Den Hoorn          Netherlands  Berlin Hyp  23,928       14 Jan 2028   1.38%           1.20%
                                             80,228

 

Capital Gains Tax

Latent capital gains tax (CGT) liabilities may exist for assets that were
acquired via share deal structures. These liabilities arise from historic,
unrealised gains embedded within the acquired entities prior to acquisition
and are separate from any CGT liabilities arising on gains made during the
Company's ownership period.

In accordance with International Financial Reporting Standards (IFRS), where
an asset is acquired via a share deal, potential latent CGT liabilities are
not recognised in the Company's financial statements, as they relate to gains
generated within the SPVs prior to acquisition. For these assets, where the
valuation exceeds their carried book cost, only the CGT liability attributable
to gains made during the Company's holding period is reflected in the NAV.

The Company's reported NAV inclusive of costs reflects all known and
quantifiable transaction costs, such as legal and agent fees, including CGT
attributable to gains made during the Company's holding period. In line with
IFRS, the Company's reported NAV, whether including or excluding costs, does
not include provision for uncrystallised latent CGT liabilities, which are
only recognised when crystallised. Realisation of such liabilities is
contingent on future events, most notably the disposal structure (whether an
asset sale or share sale) and the commercial negotiation with the buyer,
including any agreement on the sharing of latent CGT exposure.

As set out in the 31 July 2025 announcement regarding the disposal of the
Spanish Gavilanes portfolio, the transaction was structured as a share sale,
enabling an efficient and timely return of capital to shareholders. The SPVs
were acquired by P3, a European logistics investor and developer, following a
competitive two-round sale process involving multiple bids from active
logistics buyers. While no CGT was crystallised, the agreed pricing reflected
the buyer assuming responsibility for the latent CGT liability within the
acquired entities.

Within the remaining portfolio, certain assets acquired via share purchases
continue to carry latent CGT exposure, which is not recognised in the NAV. The
potential CGT impact from future sales of these assets remains uncertain, as
it will depend on the structure and terms of each transaction. However, if all
remaining disposals were structured as direct asset sales, a latent CGT impact
of approximately 1-2 pence per share on the NAV could arise. This estimate is
illustrative only, and the actual outcome will depend on several factors,
including the final transaction structure, pricing and any agreement regarding
tax exposure. The Company will continue to provide updates as further
disposals are completed.

Details of the Company and its property portfolio may be found on the
Company's website at: http://www.eurologisticsincome.co.uk

For further information please contact:

Aberdeen
 
               +44 (0) 20 7156 2382

Ben
Heatley
 

Investec Bank
plc
                +44 (0) 20 7597 4000

David Yovichic

Denis Flanagan

FTI
Consulting
+44 (0) 20 3727 1000

Dido Laurimore

Richard Gotla

Oliver Parsons

 

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