Business
Ede Lease Extension
Ede Lease Extension.
About this update from Abrdn European Logistics Income Plc
[{"type":"text","content":"\n\n16 May 2023\nLEI: 213800I9IYIKKNRT3G50\n \nabrdn European Logistics Income plc\n \nASLI completes 5-year lease extension in Ede, the Netherlands, 4% above previous passing rent\n \nabrdn European Logistics Income plc (the \"Company\" or \"ASLI\"), the Company which invests in high quality European logistics real estate, has agreed a 5-year lease extension with Dutch retail and pharmacy operator Kruidvat at its 39,840 sqm single-tenant warehouse in Ede, the Netherlands.\n \nThe new deal extends the lease expiry from 2028 to July 2033 and will generate additional income reflecting a 4% increase on the previous passing rent. It provides for future upward-only indexation capped at 4% per annum.\n \nAs part of the new agreement, Kruidvat, which is part of the A.S. Watson Group, the world's largest international health and beauty retailer ultimately owned by multinational conglomerate CK Hutchison Holdings, will occupy c. 25% of the recently refurbished and previously vacant office space. The remaining office space will be offered to the market to let with improvements now including air conditioning/climate installations, a new building management system, new toilets and upgraded reception area with new ceiling and floor finishes.\n \nThe property is located on the Heestereng Business Park in Ede, a municipality that is centrally located in the Netherlands and well positioned for national distribution. The proximity of major roads and railways offers fast connections to the Port of Rotterdam, Schiphol airport and the Ruhr area in Germany. The site is easily accessible by road thanks to its location alongside the A12 Rotterdam to Germany autoroute and the A30 to the north.\n \nIn conjunction with the recently announced Leon asset sale and lease events in France (12-year term certain to Biocoop in Avignon and a new 9-year lease to Dachser France in Niort), the overall portfolio WAULT metrics improve from 6.7 years to break to 7.7 years and from 8.9 years to expiry to 9.6 years (as at 31 December 2022).\n \nTroels Andersen, Lead Fund Manager for ASLI, commented: \"Once again having asset management colleagues across our European offices has proved a great benefit to ensuring close communication with our tenants and bringing this deal to a satisfactory conclusion. This transaction both cements t...