Tritax EuroBox PLC Tritax EuroBox -BOXE - Re-gear, new lease & solar PPA secured in Belgium

Tritax EuroBox

15/05/2024 07:00

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RNS Number : 4476O  Tritax EuroBox PLC  14 May 2024

 

Tritax EuroBox secures lease re-gear, new lease and solar PV contract in
Belgium

Tritax EuroBox plc (the "Company"), which invests in Continental European
logistics real estate assets, has agreed a lease re-gear, a new lease and
associated solar PV Power Purchase Agreement (PPA) at Logistics Park Bornem,
Belgium, in conjunction with its local asset management partner, Logistics
Capital Partners (LCP). The re-gear and new lease are both eight-year,
inflation-linked leases and have been signed, together with the PPA, with an
existing customer, which is a leading global pharmaceutical and medtech
company.

 

Summary

·   The lease re-gear is for unit B (13,945 sqm) and the new lease is for
unit C (14,935 sqm) at the Company's 45,850 sqm three-unit development in
Bornem, which is well-located 34km both from the Port of Antwerp and Brussels.

·     The unit B re-gear extends the unexpired lease term to August 2032
from August 2027, with a tenant break option in August 2030. The rent remains
at the passing rack rented level.

·    The new lease on unit C is based on the same terms as unit B with
the rent subject to an open market review (capped at 20% uplift) 12 months
from the commencement of the lease. A surrender premium has also been agreed
with the former tenant of unit C.

·   Both leases benefit from 100% inflation indexation, which will be
reviewed annually, and include Tritax EuroBox Green Lease clauses.

·    A new PPA for both units consolidates the income produced by the
units' solar PV scheme, which have a combined generating capacity of 1.35MWp.
This will benefit both the Company and the customer by improving the current
solar-related income on the Logistics Park for the Company as well as creating
cost savings for the tenant and a positive environmental impact by reducing
CO(2) emissions.

 

Background

The asset was acquired by the Company in October 2018, with LCP appointed as
the Company's development and asset manager partner for the park. The estate
is strategically located in an established industrial location within the
Belgium 'Industrial Golden Triangle', just off the N19 dual carriageway and
10km from the main A12 motorway, which links Brussels and Antwerp. Unit B was
built in 2008 and is let to a multinational pharmaceutical and medtech
company.

Unit C was developed with LCP in 2021 and leased to an online grocery
retailer. The leasing opportunity follows the tenant's decision to consolidate
operations back to their headquarters in The Netherlands a year ahead of their
break date. The customer in unit B saw the potential to expand into the
neighbouring unit, enabling them to efficiently consolidate their operations
at Bornem, a strategic location for them due to its proximity to their main
laboratory facility only 6km away. The new letting benefits the Company by
de-risking the upcoming break clause.

 

Company commentary

James Charlesworth, Asset Management Director of Tritax EuroBox plc,
commented:

"This re-gear and new lease underline our ability to support the growth
ambitions of our customer and secure long-term commitments to our well-located
assets. The agreement of a new PPA increases solar-related income, with the
inclusion of green clauses further enhancing the asset's ESG profile. The
multi-faceted agreement reflects our approach of building long-term
relationships with market-leading occupiers and capturing additional income on
our high-quality parks."

Further information

Tritax EuroBox plc

+44 (0) 20 8051 5070

Phil Redding - CEO

Mehdi Bourassi - CFO

Charles Chalkly - Investor Relations

 

Kekst CNC (Media enquiries)

Tom Climie / Guy Bates

+44 (0) 7760 160 248 / +44 (0) 7581 056 415
tritax@kekstcnc.com (mailto:tritax@kekstcnc.com)

Notes:

Tritax EuroBox plc invests in and manages a well-diversified portfolio of
Continental European logistics real estate. These assets fulfil crucial roles
in logistics and distribution supply chains, and are located in established
logistics markets near major population centres across core Continental
European countries.

Our high-quality portfolio is highly sustainable, offers predictable and
predominantly inflation-linked income and has opportunities for capital growth
through active asset management. These attributes underpin our ability to
generate attractive returns for Shareholders over the long term.

The Manager, Tritax Management LLP, has assembled a full-service, pan-European
capability for the Company, combining in-house leadership and strategic
expertise with close partnerships with leading European developers and asset
managers.

The Manager comprises a skilled, diverse team of real estate professionals
with expertise across investment, asset management, development, finance,
business analysis, research and communications. This is supplemented with
specialist, on-the-ground developers, and asset and property managers with
strong market standings in the Continental European logistics sector.

Further information on the Company is available at: tritaxeurobox.co.uk
(http://www.tritaxeurobox.co.uk)

 The Company's LEI is: 213800HK59N7H979QU33.

 

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