Tritax EuroBox secures 10-year green lease at Dusseldorf site

(Sharecast News) - Continental Europe-focussed logistics property investor Tritax EuroBox announced the securing of a 10-year green lease with a leading logistics firm for its recently-completed 36,000 square metre property in Dormagen on Friday. The London-listed company described the property as a prime logistics hub in the Düsseldorf region of Germany.

It said the sustainable building, constructed by its preferred developer-partner Dietz, was completed at the end of March.

The lease was signed within five weeks of practical completion, and included 100% consumer price index (CPI) indexation with annual reviews.

Tritax said the new agreement was 17.8% above the rental guarantee level, increasing the annualised rental income by €0.5m.

The tenant, described by the firm as a "world leader" in advanced logistics solutions, sells a range of services including e-commerce expertise, reverse logistics, and manufacturing support.

It said the green lease included clauses that would commit the tenant to using the building sustainably, as well as sharing data on energy and water consumption, waste management, and recycling.

Tritax EuroBox acquired the speculative forward funding for the project in March last year.

The property, a brownfield regeneration of a former concrete block factory vacant since 2006, was targeting DGNB Gold Certification and offered the potential for a substantial photovoltaic (PV) project in collaboration with the new occupier.

"This letting further enhances the resilience of our portfolio and demonstrates the strength of our strategy of buying high-quality sustainable assets in prime logistics locations and securing long leases with high-calibre customers," said Tritax EuroBox investment director Alina Iorgulescu.

"The agreement showcases the successful delivery of an excellent property, which was let immediately above the underwritten level, reducing the risk within the portfolio, and enhancing returns."

At 0800 BST, shares in Tritax EuroBox were up 1.5% at 0.77p.

Reporting by Josh White for Sharecast.com.