Ede Lease Extension

abrdn European Logistics Income plc

16 May 2023

 

16 May 2023

LEI: 213800I9IYIKKNRT3G50

abrdn European Logistics Income plc

ASLI completes 5-year lease extension in Ede, the Netherlands, 4% above previous passing rent

abrdn European Logistics Income plc (the "Company" or "ASLI"), the Company which invests in high quality European logistics real estate, has agreed a 5-year lease extension with Dutch retail and pharmacy operator Kruidvat at its 39,840 sqm single-tenant warehouse in Ede, the Netherlands.

The new deal extends the lease expiry from 2028 to July 2033 and will generate additional income reflecting a 4% increase on the previous passing rent. It provides for future upward-only indexation capped at 4% per annum.

As part of the new agreement, Kruidvat, which is part of the A.S. Watson Group, the world's largest international health and beauty retailer ultimately owned by multinational conglomerate CK Hutchison Holdings, will occupy c. 25% of the recently refurbished and previously vacant office space. The remaining office space will be offered to the market to let with improvements now including air conditioning/climate installations, a new building management system, new toilets and upgraded reception area with new ceiling and floor finishes.

The property is located on the Heestereng Business Park in Ede, a municipality that is centrally located in the Netherlands and well positioned for national distribution. The proximity of major roads and railways offers fast connections to the Port of Rotterdam, Schiphol airport and the Ruhr area in Germany. The site is easily accessible by road thanks to its location alongside the A12 Rotterdam to Germany autoroute and the A30 to the north.

In conjunction with the recently announced Leon asset sale and lease events in France (12-year term certain to Biocoop in Avignon and a new 9-year lease to Dachser France in Niort), the overall portfolio WAULT metrics improve from 6.7 years to break to 7.7 years and from 8.9 years to expiry to 9.6 years (as at 31 December 2022).

Troels Andersen, Lead Fund Manager for ASLI, commented: "Once again having asset management colleagues across our European offices has proved a great benefit to ensuring close communication with our tenants and bringing this deal to a satisfactory conclusion. This transaction both cements the tenant's longer-term warehousing operations and satisfies its immediate office occupational requirements, thereby improving the asset profile and overall portfolio WAULT. Having improved the quality and ESG credentials of the office space, we anticipate good demand for the remaining space."

For further information please contact:

abrdn                                                                                    [phone]

Luke Mason

Gary Jones

Investec Bank plc                                                             [phone]

David Yovichic

Denis Flanagan

FTI Consulting                                                                   [phone]

Dido Laurimore

Richard Gotla

James McEwan

 

END