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Tritax Big Box REIT on Friday said it entered a conditional agreement with a subsidiary of Dietz AG for the purchase of a logistics asset in Dusseldorf, Germany for €76.4 million.
The London-based property investor said that the logistics asset will comprise three adjoining units with a total gross internal area of roughly 36,437 square metres. It is located between Cologne and Dusseldorf and is currently under construction.
Tritax EuroBox noted that the asset has an 18-month rental guarantee from German property investor Dietz at a rent reflecting €5.60 per square metre per month.
The purchase price reflects a net initial yield of 3.3% based on the rental guarantee income. Market rental levels in the location are expected to surpass €6.00 per square metre per month for warehouse space, it said.
The completion of the acquisition is dependent on shareholder approval ‘among other things’, Tritax EuroBox noted.
This is due to Dietz being considered a ‘related party’ to Tritax under listing rules.
‘We are delighted to be acquiring this asset, which is the eleventh German investment for Tritax EuroBox, bringing our total amount invested in the country to over €800 million,’ Assistant Fund Manager Alina Iorgulescu commented.
Shares were down 0.9% at 103.70 pence each on Friday morning in London.
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