REG - abrdn Euro Logistics - Purchase of warehouses in France & the Netherlands

ING Groep NVAnnouncement

05/10/2022 09:34

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RNS Number : 7690B  abrdn European Logistics Income plc  05 October 2022

5 October 2022

LEI: 213800I9IYIKKNRT3G50

 

abrdn European Logistics Income plc

 

Acquisition of warehouses in France and the Netherlands for €21.4 million

 

abrdn European Logistics Income plc (the "Company" or "ASLI") announces the
acquisition of two logistics warehouses, in Dijon, France, and Horst, the
Netherlands, for an aggregate purchase price of €21.4 million.

 

Constructed in 2004 and subsequently refurbished in 2021, the 5,069 sqm Dijon
property sits on a total plot size of c. 27,000 sqm. Located in the
municipality of Gevrey-Chambertin, just ten kilometres from Dijon on the main
logistics 'backbone', the freehold asset has been acquired for €9.3 million,
reflecting a net initial yield of 4.2%. The property benefits from excellent
arterial connectivity, with direct access to the A39 connecting to the A31 and
A36 to Lyon, providing links to the wider Alpine road network.

 

The building is leased to Dachser Intelligent Logistics, the German-owned
global third party logistics provider founded in 1930, operating as Dachser
France, on a ten year term. The lease benefits from annual French ILAT
indexation, offering attractive long term income. Low site coverage provides
excellent opportunities for future expansion.

 

Constructed in 2005, the Horst property was identified earlier in the year. It
totals c. 6,900 sqm, including office space, and has been acquired for €12.1
million as part of a sale and leaseback deal with Limax, a producer, packager
and distributor of soft fruits and mushrooms. Serving as its headquarters, the
tenant critical asset with cold storage lies between Venlo and Venray, an area
which is well known for its agrofood and agricultural businesses. It is
considered the gateway to the European hinterland, close to barge and rail
terminals and the A73 to Nijmegen and A67 to Antwerp/ Duisburg.

 

The freehold property, which covers a total land plot of c. 40,500 sqm,
provides ample scope for future extensions and benefits from a ten year lease
term subject to annual CPI capped indexation, with the price reflecting a net
initial yield of 3.8%. It features rooftop solar panels which enhance the
portfolio's sustainability credentials, in line with the Company's strategy.

 

Evert Castelein, Fund Manager for ASLI, commented: "These assets fit with our
strict investment criteria, being excellently located with direct access to
major routes and standing on large plots allowing for future expansion. The
portfolio now totals 28 properties across five countries, adding further
diversity to our strategy.

 

"Longer term leases with CPI indexation and our quality diversified asset base
across Continental Europe continues to underpin the Company's strategy and
should deliver shareholder value with our increasing tilt towards urban
locations close to major population centres."

 

Loan to value

These purchases have been financed through cash reserves and expected
additional asset level debt drawn with ING bank at 3.05% for a shorter three
year term. This puts the Company's asset level fixed debt at €261.6 million,
with the loan to value (LTV) ratio using 30 June 2022 valuations at 31%. The
average cost of debt across the portfolio is now 1.98%. In addition, while SPV
financings are finalised the Company will be drawn €25 million against its
short term revolving credit facility leaving the total debt LTV ratio at 32.9%
until repayment, following which this will fall back to c.31% to sit well
within the Company's target asset level LTV of around 35%.

 

 

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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