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Tritax EuroBox PLC on Wednesday said it secured a lease re-gear and a new lease at Logistics Park Bornem in Belgium, alongside an associated solar photovoltaic power purchase agreement.
Tritax EuroBox invests in continental European logistics real estate.
It said the re-gear and new lease are both eight-year, inflation-linked leases and have been signed, together with the solar PV PPA, with an unnamed existing customer.
Tritax EuroBox described the company as a ‘leading global pharmaceutical and medtech company’.
The lease re-gear is for unit B at Logistics Park Bornem, totalling 13,945 square metres, while the new lease is for unit C, totalling 14,935 square metres. Tritax EuroBox has a three-unit development in Bornem totalling 45,850 square metres, which is ‘well-located’ 34 kilometres away from the port of Antwerp and Brussels.
The unit B re-gear extends the unexpired lease term to August 2032 from August 2027, Tritax Eurobox said, with a tenant break option in August 2030 and the rent remaining at the passing rack rented level.
It said the new lease on unit C is based on the same terms as unit B, with the rent subject to an open market review, capped at a 20% uplift 12 months from the beginning of the lease.
A surrender premium has also been agreed with the former tenant of unit C, Tritax EuroBox noted. Both leases benefit from 100% inflation indexation, which will be reviewed annually, and include Tritax EuroBox green lease clauses.
Tritax EuroBox also said it signed a new PPA for both units, consolidating the income produced by the units’ solar PV scheme, which have a combined generating capacity of 1.35 megawatt peak.
It said this will benefit ‘both the company and the customer by improving the current solar-related income on the Logistics Park for the company as well as creating cost savings for the tenant and a positive environmental impact by reducing [carbon dioxide] emissions’.
Tritax EuroBox Asset Management Director James Charlesworth commented: ‘This re-gear and new lease underline our ability to support the growth ambitions of our customer and secure long-term commitments to our well-located assets.
‘The agreement of a new PPA increases solar-related income, with the inclusion of green clauses further enhancing the asset’s [environmental, social and governance] profile. The multi-faceted agreement reflects our approach of building long-term relationships with market-leading occupiers and capturing additional income on our high-quality parks.’
Shares in Tritax EuroBox were up 0.2% to 62.60 pence each in London on Wednesday afternoon.
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