On 1 November 2018 the Company announced that it had exchanged contracts to acquire a new development in Oss, the Netherlands, for a purchase price of €15.7 million providing a net yield of 5.3%. The agreement with developer Heembouw Breda B.V is structured as a forward funding deal with a 5.5% coupon rate. The development commenced in November 2018 with an expected delivery date of 1 July 2019.
The freehold property, located on the Vorstengrafdonk business park in Oss, itself a new logistic / industrial development, comprises approximately 10,200 square metres warehouse space with associated mezzanine and office space with 160 parking places. Road accessibility is excellent, being at the junction of main motorways A50, A59 and N329, and the total plot size is 27,900 square metres. The space will feature floor load capacity of 5,000 kg/sqm, free height of 10 metres, 5 overhead doors and the option to create 8 to 10 additional loading docks. Additional space gives an option to extend in the future.
Orangeworks Group B.V., a company specialising in machinery for the food industry, has agreed a 15 year triple net lease, with no breaks and full CPI indexation, to commence on completion of the project to consolidate all operations in one location.
Oss itself is strategically located in the province of North-Brabant between the world renowned ports of Rotterdam and Antwerp and close to the Ruhr area. These surroundings make Brabant hugely important for the logistics sector, ideal for transhipment, assembly and transit from and to the European hinterland. The cities of Den Bosch and Nijmegen are also nearby, just 15 kilometres away. Oss has a well-diversified economy and is strong in the manufacturing, pharmaceutical, automation and logistic sectors. It is easily accessible by road (A50, A59 and N329) and water. There is a small container and bulk terminal in the north connected to the river Maas which functions as an extended gate for the Rotterdam ECT Delta Terminal.