Acquisition of a new built asset in Leon, Northern Spain for €15.3 million
The Company was pleased to announce that it had signed an agreement to acquire this new logistics warehouse in the North of Spain for a net value of €15.3 million. The warehouse which was under development by Goodman Real Estate Spain S.L. with completion expected by mid-2019 was signed over in late May 2019.
The property is well located within the Villadangos Logistics Park near Leon city centre and the airport with excellent connections to the AP71, A66 and A231 highways. Other large occupiers of this park include the Spanish supermarket chain Mercadona and the global wind power solutions provider Vestas. Other nearby occupiers are Inditex, Schenker, K+N and TNT.
The total size of the property is approximately 32,600 square metres. This is a state-of-the-art quality asset with 28 loading docks and a 5 tonne floor load capacity. The property comprises three modules and allows for flexibility to convert into a multi-tenant facility if required in the future.
The property is fully let to Decathlon, a large international retailer, on a fixed ten year lease with annual CPI indexation. Under the terms of the lease, the lessee retains a right to call for the expansion of the logistic premises, up to an additional 10,020 square metres gross leasable area, thereby creating further potential upside for ASLI.
The French sports goods company, Decathlon, is one of the largest discount retailers in sports goods and has a dominant position in the Spanish retail market. This strategic position in Leon will distribute goods to its shops in the north west of Spain.