Tritax Eurobox to acquire German logistics asset

Real estate investment trust Tritax EuroBox has entered into a conditional agreement with a subsidiary of German property investor Dietz Aktiengesellschaft for the speculative forward funding acquisition of a €76.41m logistics asset in Dormagen, located between Cologne and Düsseldorf.

Tritax Eurobox said on Friday that the asset, which was currently being constructed, was held freehold and once built will comprise three adjacent units with a total gross internal area of approximately 36,437 square metres. The three units will offer flexible leasing options to be let to either multiple tenants or a single tenant.

The FTSE 250-listed company highlighted that the asset benefits from an eighteen-month rental guarantee from Dietz at a rent reflecting €5.60 per square metre per month for warehouse space. Market rental levels in the location were expected to exceed €6.00 per square metre per month.

The acquisition price reflects a net initial yield of 3.3% based on the rental guarantee income.