Lease extension - Avignon, France

abrdn European Logistics Income plc

02 May 2023

 

2 May 2023

LEI: 213800I9IYIKKNRT3G50

abrdn European Logistics Income plc

ASLI completes 28,500 sqm long-term lease renewal in Avignon, France

abrdn European Logistics Income plc (the "Company" or "ASLI"), the Company which invests in high quality European logistics real estate, has agreed a 28,500 sqm lease renewal with Biocoop, a leading organic food distributor, at its highly sustainable warehouse near Avignon, France.

The 12-year lease, effective 1 March 2023, will generate annual contracted rent of €2.5 million, equating to €86 per sqm and provides for full annual French ILAT indexation with no cap.

The 'HQE Excellent' climate-controlled facility comprises four cells, with cold storage accounting for 33% of the floor space. It serves as a strategically important location for Biocoop, which operates a unique multi-professional cooperative model, supporting a network of over 570 organic stores promoting local production to limit transportation and support local economies. The property also generates €165,000 per annum of additional income from rooftop solar panels.

Located in Noves, in South Eastern Provence, the property benefits from excellent transport links, with direct access to the A7 and A9 motorways, as well as the nearby Avignon airport. The region is renowned for its production of fresh flowers, fruit and vegetables, and as a food distribution hub, with Carrefour, Aldi and Système U operating distribution centres in the area.

Troels Andersen, Lead Fund Manager for ASLI, commented: "This new long-term lease demonstrates the ongoing demand for highly sustainable, tenant critical warehouse space in Europe. The Avignon region has seen limited new development in recent years, which is underpinning significant rental growth and which is expected to have a positive impact on property valuations. Furthermore, Biocoop's environmental credentials, operating a cooperative model seeking to use local produce and limiting transportation emissions, are aligned with our own commitment to improving the already strong portfolio ESG credentials."

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

 

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