The Board was pleased to announce on 23 November 2018 that the Company had exchanged conditional contracts to acquire a high quality logistics warehouse located in Meung-sur-Loire, France for €23.5 million, providing a net initial yield of 4.7%. Contracts are expected to become unconditional by no later than 22 January 2019. The property is fully let to Office Depot France until 2026.
The tenant, Office Depot France (part of the Aurelius Group) is a leader in the office supplies market and has operated in France since 1995, employing over 1,000 staff across 60 stores, online and B2B. Recent consolidation and streamlining of the business has resulted in all of the company’s French business being based out of Meung-sur-Loire.
In terms of location, the warehouse is situated 27km south west of Orleans at Parc Synergie, which serves Paris, Central France and the South of France via a very effective road and rail network. Parc Synergie is majority-owned by Prologis and is an established logistics location with a number of other well-known logistics companies on site such as DHL, ID Logistics, and XPO Logistics. Its proximity to the strategic logistics ‘Dorsale’ corridor that links Lille-Paris-Lyon-Marseille means the location also serves international, as well as national, distributers.
The building itself has a total lettable area of 30,180 square metres and is very well maintained to modern specifications with a good office to storage logistics ratio and flexibility as to the numbers of occupiers.