REG - abrdn Euro Logistics - Portfolio Sales Update

abrdn European Logistics IncomeAnnouncement

31/07/2025 07:01

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RNS Number : 2889T  abrdn European Logistics Income plc  31 July 2025

abrdn European Logistics Income plc
LEI: 213800I9IYIKKNRT3G50

Portfolio Sales Update

31 July 2025 - abrdn European Logistics Income plc (the "Company"), which is
invested in a diversified portfolio of European logistics real estate,
announces that it has completed the sale of a portfolio of nine assets in
Gavilanes, Madrid, as part of its managed wind-down, to a leading long-term
investor and developer of logistics properties in Europe.

Sale of Gavilanes warehouse portfolio in Madrid, Spain

The transaction was structured as a corporate disposal, involving the sale of
the Spanish subsidiaries that hold the underlying property assets, for a net
consideration of approximately €146 million.

The portfolio, which comprises 122,000 square metres of total lettable area
across nine assets, was sold on a portfolio basis to ensure an efficient and
timely return of capital to shareholders under the wind-down programme. At the
time of sale, eight of the nine units were fully let, with Unit 1B,
representing approximately 11,260 square metres, remaining vacant. Key tenants
in the portfolio include ADER, Amazon, Carrefour, Method, Molecor and
Talentum.

As at 31 March 2025, the portfolio was valued at €168.6 million within the
Company's net asset value. By executing the disposal through a share sale of
the property owning companies, the Company expedited the sales process and did
not crystallise the associated latent capital gains tax liability. This
liability is not recognised under IFRS and EPRA in the Company's net asset
value and would have been incurred if the assets had been sold individually.
It is estimated that the after-tax proceeds from a direct asset sale, assuming
disposal values in line with the Q1 2025 valuation, would have been broadly
comparable to those achieved through the corporate disposal.

Continued sales progress

This transaction significantly progresses the managed wind-down, with 16 of
the 27 assets in the Company's portfolio now sold, generating aggregate gross
sales proceeds of over €293 million.

Of the 11 remaining assets, one disposal is expected to complete shortly and a
further three transactions 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. The Investment Manager
continues to assess ongoing asset management initiatives and engage with
tenants to identify opportunities where the Company can enhance value in
advance of potential disposals.

Debt Financing

As at 31 March 2025, the Company's fixed rate debt facilities totalled €218
million, with an average all-in interest rate of 1.93%. Following the
conclusion of the previously announced sales in July and this portfolio sale
the Company's outstanding fixed rate debt has reduced to €99.5 million with
an all-in interest rate of 1.4%.

Further Capital Distribution

On the 16 July 2025, following asset disposals in Germany and the Netherlands,
the Board announced details of a return of approximately £49.5 million to
shareholders, payable on 13 August 2025, equivalent to 12.0 pence per Ordinary
Share, by way of a further issue and redemption of B Shares on 31 July.

Following the completion of the Gavilanes portfolio sale and the anticipated
completion of a further disposal in the near term, the Company intends to make
an additional capital distribution in September 2025, also by way of B Shares.
This distribution will reflect the net proceeds from the two aforementioned
transactions. Further details will be provided once the next anticipated
disposal has 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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