Tritax EuroBox agrees new green lease withSamsung SDS
Tritax EuroBox, which invests in Continental European logistics real estate assets, has agreed a new green lease at the Company's property in Breda, a prime logistics location in the West Brabant region of the Netherlands.
This new, well-specified multi-let and sustainable property was acquired by the Company in December 2019. The property has a gross internal area of 46,022 sq m and is divided into four units, with eaves height of 12 metres and with significant yard area and parking. The property is sustainable with a BREEAM ‘Very Good’ rating with solar panels across the entire roof and LED lighting, providing the tenant with efficient and low carbon energy use.
Two units with a combined gross internal area of 20,415 sq m are already leased to Abbott Logistics BV, part of Abbott Laboratories, on a 10-year lease term. The remaining two units benefited from a 12-month third party rental guarantee to the Company.
The Company has now let the two vacant units with a combined gross internal area of 25,607 sq m to Samsung SDS Global SCL Netherlands Coöperatief, part of Samsung SDS, the IT arm of the Samsung Group.
The lease has been agreed for a three-year term from 15 December 2020 at an initial annual headline rent 6 per cent above the level of the rental guarantee secured at acquisition. The new rent will be subject to annual CPI uplifts reflecting 100 per cent of the Dutch Consumer Price Index
Sustainability is fundamental to the Company’s ability to create long-term value for shareholders and in line with its long-term sustainability strategy. Tritax EuroBox says it has collaborated with Samsung to include green clauses in the lease agreement to ensure the commitment of the tenant to use the building in a sustainable way, sharing data on energy, water consumption waste management and recycling.
Securing this letting with such a high-quality tenant ahead of the expiry of the rental guarantee further demonstrates the strength of our properties and locations. Following the completion of this new letting, the property is now fully let to Abbott Logistics B.V. and Samsung SDS Global SCL Netherlands Coöperatief UA.
Alina Iorgulescu, Assistant Fund Manager of Tritax EuroBox, says: “This letting further diversifies the portfolio by tenant covenant and validates our strategy of buying high quality sustainable assets, situated in prime logistics locations. These locations experience strong occupier demand and constrained supply as well as benefitting from the value of the Company's sector specific expertise and local presence through its market-leading asset managers with deep local knowledge. We look forward to a long and productive relationship with Samsung in Breda. We are particularly pleased to have signed our first green lease with a company similarly committed to ESG principles.”