New distribution centre near Avignon, France purchased for €44.5 million
The Company was pleased to announce that it exchanged conditional contracts to acquire a new freehold distribution warehouse in France, for a net value of €44.5 million completing on 30 October 2018.
This newly built climate controlled facility in Noves, near Avignon, sits in the south of the French corridor in the Provence region at the crossroads of the A7 and A9 motorways and is 7km from Avignon airport. The region is highly ranked in France for the production of fresh flowers, fruit and vegetables. The warehouse is very well positioned for food distribution.
This income producing asset has been fully let to Biocoop, a French supermarket operator, with a 12 year lease and annual indexation. It consists of four cells with a total area of over 28,000 square metres, with 33% of the floor space given over to cold storage. Biocoop, founded in 1986, is a leader in organic food distribution and known for its fair trade products and wide choice of eco-products and cosmetics. Avignon is a strategic location for Biocoop which operates a unique multi-professional cooperative model. The property, developed by Barjane and which provides the versatility required to move to a multi-tenant scenario if ever required, has been labelled “HQE Excellent” with a high specification agreed with Biocoop which itself looks to limit environmental impact.
The tenant has signed a fully indexed 12 year lease of which 9 are firm. Additional secured cash flow is generated from solar panels placed on the roof with an option of a photovoltaic plant alongside the property.