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(Alliance News) - Aberdeen Standard European Logistics Income PLC said Monday it has acquired a cross-dock logistics warehouse in Madrid, Spain, for EUR9.2 million, at a net initial yield of 5.0%.
The property is 6,785 square metres in size, 1,892 of which is office space. It also has 37 loading bays and doors on each side.
The property is currently leased to DHL Freight Spain SLU - which is part of DHL, a division of German logistics firm Deutsche Post AG - on a recently renewed CPI-indexed lease of ten years.
"I am extremely pleased that we have been able to source this off-market deal, again emphasising the benefit of having our own locally based transaction managers in many of the countries where we invest. Madrid has a substantial and important logistics market and we see strong growth in the provision of modern logistics stock in the outer limits of the city," said Fund Manager Evert Castelein.
"However, the highly constrained nature of the Coslada submarket and its strategic importance in connecting the city with the airport and routes through to the east of the country, supports the long term relevance of this asset in the supply chain," Castelein added.
Following the acquisition, Aberdeen Standard European will have a portfolio of 14 assets with a total value of EUR387.3 million.
Shares in the European industrial focused-property investor were down 0.1% at 91.90 pence each on Monday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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