The Company has also signed a sale-and-leaseback purchase agreement for the acquisition of an existing cross-dock warehouse in Waddinxveen for €33 million and a net initial yield of 5.0%. The property is leased to Combilo International B.V. on a 15 year triple net lease with capped CPI indexation of 2.5% per annum.
Waddinxveen is centrally located in the heart of the densely populated Randstad conurbation close to Gouda with an excellent road network via the A12 and A20 linking with the Hague and Rotterdam through to Germany. The property is located on the Distripark Business Park which is occupied by several large logistics companies. Vacancy rates in this part of the Netherlands remain very low for logistics warehousing space and the municipality is seeking to prevent oversupply.
The freehold property itself is an existing cross-dock warehouse of approx. 28,000 square metres with 51 loading doors providing excellent facilities across 6 units (5 being cooled). Cross-docking is the procedure of unloading materials from an incoming vehicle and loading them directly into outbound vehicles with little or no storage in between. The building has good free height and floor load capacity and flexibility which lends itself to conversion to multi-tenant use. Additional land provides future asset management options.
Combilo International B.V. is a stable, family-owned company that specialises in the import and export and packaging of fruit and vegetables for supermarkets and wholesalers. The company has a broad client base across Europe. Combilo has occupied the building since 2001. Its commitment to the location and building is explained by the central location in the Randstad, the most densely populated area in the Netherlands, and the large concentration of greenhouses with growers of fruit and vegetables.
The Manager believes this warehouse will generate a durable income stream thanks to its central location, good building specifications and long lease with a strong covenant tenant with the potential option to further expand the building.