Aberdeen Standard European Logistics Income PLC has exchanged contracts to acquire a newly built fully income-producing logistics warehouse in Warsaw, Poland, for a purchase price of €27.5 million providing a net initial yield of 5.64%. The agreement is with developer Panattoni Development Europe and Marvipol Logistics. Completion of the acquisition is currently scheduled for later in the month.
The warehouse is located in an established logistics location in Poland along the A2 motorway which is one of the arterial routes for Warsaw and benefits from proximity to the city. There are also two international airports within easy access. All of these factors make this an ideal location for urban logistics and e-commerce related delivery. The logistics centre comprises two warehouses totalling 24,626 square metres, including 1,959 square metres of office space, with one building containing cross-docking facilities. The site is predominantly pre-let with an average lease length of 8 years. The main tenant is DHL, a division of the German logistics company, Deutsche Post DHL, the world's largest logistics company operating globally, particularly in sea and air mail. Other tenants include ICS Polska (specialising in industrial cleaning products) and Spedimex (a logistics company). Advanced negotiations are underway regarding the lease of the remaining space, currently covered by a 5-year rental guarantee. The Investment Manager is expecting these to conclude favourably shortly.
This acquisition brings the company's portfolio to twelve quality logistics assets spread across five European countries and occupied by tenants with long indexed leases.
