Tritax EuroBox signs lease agreements and solar power deal in Belgium

LONDON: Tritax EuroBox plc, a prominent investor in Continental European logistics real estate assets, has announced a significant advancement in its portfolio management. The company has successfully negotiated a lease re-gear and a new lease agreement, coupled with a solar PV Power Purchase Agreement (PPA), at the Logistics Park Bornem in Belgium.

This strategic move was executed in collaboration with its local asset management partner, Logistics Capital Partners (LCP).

The lease re-gear pertains to unit B, which spans 13,945 sqm, extending the unexpired lease term to August 2032 from the previous end date of August 2027. This extension includes a tenant break option in August 2030, with the rent maintained at the current level.

Concurrently, a new lease has been signed for unit C, covering 14,935 sqm. This lease is based on similar terms to unit B, with an open market review of the rent, capped at a 20% uplift, scheduled 12 months from the lease’s start. Additionally, a surrender premium was agreed upon with the former tenant of unit C.

Both leasing agreements are bolstered by 100% inflation indexation, subject to annual reviews, and include Tritax EuroBox’s Green Lease clauses. Furthermore, the new PPA for both units aims to consolidate the income generated from the solar PV installations, which have a combined capacity of 1.35MWp.

This initiative is expected to enhance the Company’s solar-related income and provide cost savings for the tenant, while also contributing to environmental sustainability through reduced CO2 emissions.

The Logistics Park Bornem, acquired by the Company in October 2018, is strategically located within Belgium’s ‘Industrial Golden Triangle.’ It boasts excellent connectivity, situated just off the N19 dual carriageway and a mere 10km from the A12 motorway that connects Brussels and Antwerp. Unit B, constructed in 2008, is currently leased to a multinational pharmaceutical and medtech company.

Unit C, developed in 2021, was initially leased to an online grocery retailer. Following the retailer’s decision to consolidate operations back to their headquarters in The Netherlands, the opportunity arose for the existing tenant in unit B to expand into unit C. This expansion allows them to consolidate their operations efficiently, taking advantage of the site’s strategic location near their main laboratory facility, only 6km away.

The announcement of these lease agreements and the solar PPA underscores Tritax EuroBox’s commitment to securing long-term, sustainable income streams and supporting environmental stewardship. The move is a testament to the Company’s strategic asset management and its dedication to enhancing shareholder value.

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