Tritax EuroBox has forward funded a €76.4m (£64.4m) development site in Düsseldorf.
The “Dormagen Proposal” is currently being constructed by the company’s development partner Dietz Aktiengesellschaft.
Once built, the freehold site will comprise three adjacent industrial units with a total gross internal area of approximately 390,000 sq ft, which can either be multi-let or let to a single tenant.
The acquisition price of €76.4m reflects a net initial yield of 3.3% based on an 18-month rental guarantee from Dietz Seller at €5.60 per sq m per month.
Tritax expects to achieve rents of circa €6 per sq m per month.
Dormagen, located between Cologne and Düsseldorf, is considered one of the principal logistics areas in Germany and is characterised by a scarcity of available development land and available buildings coupled with strong occupier demand.
Alina Iorgulescu, assistant fund manager at Tritax EuroBox, said: “This is the eleventh German investment for Tritax EuroBox, bringing our total amount invested in the country to over €800m.”
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