Abrdn European Logistics... Share Discussion Threads

[speedsgh] 25/2/2019 11:27

Net Asset Value as at 31 December 2018 -

Highlights

-- NAV per share of EUR1.08 as at 31 December 2018 (30 September 2018 - EUR1.09) (GBP - 96.7p, 30 September 2018 GBP - 97.3p)

-- Portfolio capital value increased by 0.9% compared to September 2018 quarter end valuation. The Company's high quality European Logistics portfolio valued at EUR149.2m

-- Second interim dividend of 1.0p per Ordinary share paid to shareholders on 20 December 2018

-- Third interim dividend of 1.3p per Ordinary share declared on 22 February 2019 in respect of the period from initial admission to 31 December 2018

-- During the quarter and post the period end, the Company continued to complete the investment of the remainder of the net equity proceeds raised at the time of the Company's initial public offering:

Ø Investments in Avignon (France), Waddinxveen, Oss and Zeewolde (the Netherlands) were all added to the portfolio in the period. Oss and Zeewolde are both developments and structured as forward funding deals with 5.50% and 2.55% coupon rates on cash employed respectively. Both are expected to be delivered by mid-2019

Ø A freehold logistics warehouse located in Meung-sur-Loire, France, purchased for EUR23.5m, providing a net initial yield of 4.7%. The property is fully let to Office Depot France until 2026. The property was added to the portfolio in February 2019

Ø Development in Leon, Northern Spain, with a net value of EUR15.3 million signed up for completion by March 2019. Net initial yield is 6.0% reflecting agreed passing rent which is subject to annual indexation

Ø Share purchase agreement signed on 18 February 2019 to acquire a multi-let, modern logistics facility in Krakow, Poland's second biggest city, for EUR24.5m. The property is fully let, providing a net initial yield of 6.8%. Expected closing in early March 2019.

-- During February, the Company arranged EUR33m of external debt, secured against its two French assets. The debt, provided by BayernLB, has been drawn for a 7 year term, at an attractive all-in fixed rate, highlighting the high quality and durable income streams provided by these assets and the availability of attractive external bank debt. The Company is also in advanced negotiations with a German bank to arrange further debt facilities secured against its German assets in order to fund the stage payments on its developments.

-- Continued strong demand for the Company's shares. As at 21 February 2018 the share price was GBP 99.2p - a premium to the 31 December 2018 NAV of 2.6%...

[topvest] 20/12/2018 10:01

Sensible, but they sold the original shares based on a targeted 5.5% yield and we haven't had the first year-end. Not very impressive that they have changed tack so quickly.

[speedsgh] 20/12/2018 09:43

Company Update -

Introduction

As announced on 19 November 2018, with the exchange of contracts on the assets in Zeewolde and Waddinxveen in the Netherlands, the Company has invested, or committed to invest, the whole of the net equity proceeds raised at the time of the Company's initial public offering in December 2017. The most recent addition to the portfolio (a warehouse in Meung-Sur-Loire in France) was announced on 23 November 2018 and the Company is in the final stages of due diligence to acquire an asset in Poland. The addition of the Polish asset would see the portfolio increase to ten freehold assets, five of which are brand new high-quality warehouses, located across five countries with a total purchase value of over €265 million, an average net initial yield of 5.1% and a weighted average unexpired lease term (WAULT) in excess of ten years. As previously highlighted, the pipeline of investment opportunities for the Company remains strong.

With the Manager at an advanced stage of due diligence on a number of potential acquisitions, the Company is close to concluding the process of putting in place debt facilities, secured on certain properties within the portfolio, to provide financing for an additional asset and to fund stage payments that are required for forward funded projects expected to complete in mid-2019 in Spain and the Netherlands. The Board and the Manager are convinced of the high quality of the assets purchased to date, and are confident that the durable income streams that these properties provide under their long index-linked leases will benefit the Company and its shareholders. Europe maintains a clear advantage over UK logistics assets in terms of yields and low financing costs, with the strong underlying fundamentals expected to drive further growth in logistics demand, ultimately supporting rental and capital growth.

Shareholder update

The Board has closely monitored the development of the European logistics market over the past twelve months and, as noted in the Company's announcement of 19 November, is conscious of the very strong market demand for logistics assets across much of developed Europe. This has resulted in a material degree of yield compression. At the same time, ongoing demand for assets of the high quality seen in the Company's portfolio is expected to result in a marked uplift in their capital value over time, adding to the total return. The breadth and depth of the Manager's real estate operations across Europe has enabled it to build the high quality portfolio of assets now held by the Company and which the Board has been closely involved with through regular reporting and meetings. During the Manager's recent series of investor updates with leading shareholders, discussion focused on the Company's total return characteristics and distribution targets, and, in particular, whether the current level of gearing and/or target return should be reviewed given the market conditions referred to above. Following shareholder feedback, the Board has determined that it would be in the best interests of shareholders as a whole to maintain gearing at or around 35 per cent. of gross assets, rather than implementing a higher gearing strategy at this stage of the market cycle in an effort to counteract the effects of falling yields. The Board will keep the level of borrowings under review and the aggregate borrowings will always be subject to the absolute maximum set at the time of the Company's launch, calculated at the time of drawdown for a property purchase, of 50 per cent. of Gross Assets.

As a corollary, the Board has concluded that the Company's current distribution target should be amended. This will ensure that the Company can achieve a sustainable and fully covered dividend over the long term and maintain sufficient cash reserves, without compromising on the very high quality of the Company's portfolio as and when further logistics assets are acquired. The Company will therefore seek to target for an investor at launch an annual yield of 5.0 per cent. per Ordinary Share and a total shareholder return of 7.5 per cent. per annum (each in Euro terms). For the avoidance of doubt, the Board still expects to pay, in aggregate, distributions of no less than 3.0 pence per Ordinary Share in respect of the period from initial admission to 31 December 2018.

Future growth

The Board and the Manager remain confident that the market for European logistics assets will continue to offer many attractive investment opportunities in the future, and the intention remains to seek to grow the Company through further equity issuance in the coming months, alongside the deployment of the associated debt in accordance with the Company's prevailing gearing guidelines. The European logistics market is sizeable and growing, with the sector benefiting from rapid take-up of facilities and long inflation-linked leases to quality tenants.

Management fee

As the Company seeks to grow into the fast-moving sector of European real estate, the Board and the Manager have agreed that the annual management fee applied to the first €500 million of assets will be reduced from 0.95 per cent. to 0.75 per cent. of the net asset value as calculated under the management agreement.

[speedsgh] 19/11/2018 12:50

New acquisitions, Outlook and Gearing -

PURCHASE AGREEMENTS SIGNED FOR THE ACQUISITION OF ASSETS LOCATED IN ZEEWOLDE AND WADDINXVEEN, THE NETHERLANDS, FOR A TOTAL VALUE OF €62.25 MILLION...

...Outlook - future acquisitions and gearing

With the exchange of contracts on Zeewolde and Waddinxveen, the Company has now invested, or committed to invest, the whole of the net equity proceeds raised at launch in December 2017. In line with expectations set out at the time of launch, the Company has therefore deployed its initial funds in a portfolio comprising 8 properties spread over 4 countries, of which 5 are brand-new high quality warehouses. The current portfolio is expected to generate a healthy income return thanks to an average lease length of 10.8 years, all with indexed leases to strong covenant tenants. The pipeline of investment opportunities for the Company remains strong, with the Investment Manager at very advanced stages of due diligence on a number of potential acquisitions. As a result the Company is also in the process of putting gearing facilities in place, secured on certain properties within the portfolio, to provide financing for additional assets and to fund stage payments that are required for forward funded projects.

The Board and the Investment Manager remain confident that the market for European logistics assets will continue to offer many attractive investment opportunities in the future, and the intention remains to seek to grow the Company through further equity issuance in the coming months, alongside the deployment of associated debt in accordance with the Company's prevailing gearing guidelines.

The Board recognises the need for the Investment Manager to continue to build a portfolio of the highest quality assets to provide shareholders with the targeted levels of return and with the in-depth due diligence required. At the same time, it is cognisant of the very strong levels of market interest for logistics assets seen over the past twelve months and the tightening of yields which has ensued. The Board remains committed to the overarching maximum gearing policy limit of 50 per cent. of gross assets; however, subject to the requisite formal approval by shareholders in general meeting, it expects to seek to adjust materially the current gearing guideline of 30-35 per cent. of gross assets in the very near future, with a view to ensuring that the Company's targeted returns remain achievable without compromising on the very high quality of logistics assets which the Investment Manager has already brought to the portfolio.

[speedsgh] 02/11/2018 18:43

[cont'd from previous post]

COMPLETION OF AVIGNON ACQUISITION FOR €44.5 MILLION

The Company is also pleased to announce that it has completed the acquisition of the previously announced new freehold distribution warehouse in France, for a net value of €44.5 million.

This newly built climate controlled facility in Noves, near Avignon, with an approximate area of 28,570 square metres 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 with Carrefour, Aldi and Système U already operating distribution centres in the area.

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 approximately 28,570 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. As at the end of August 2018 its network operated over 550 organic stores promoting local production to limit transport and support local economies. 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. Net initial yield is expected to be in the region of 5.0% reflecting agreed passing rent which will be subject to annual indexation. Covenant strength is very strong. Additional secured cash flow will be generated from solar panels placed on the roof with an option of a photovoltaic plant alongside the property.

Evert Castelein, the Company's Fund Manager, commented:
"We are extremely pleased to have completed on Avignon and in addition to announce this premium development opportunity in Oss which we expect to close in July 2019. We are confident that we can generate a solid and sustainable income stream from our portfolio assets. We are seeing very strong demand in the market for modern, best-in-class logistics facilities.

Our pipeline of investment opportunities remains strong across Europe. A number of further properties are undergoing due diligence or have price agreements in place and announcements are expected shortly. Despite the continued tightening of logistics yields in many countries and increasing investor demand in the European logistics space, we continue to build a really well-diversified portfolio of very high quality European logistics properties with a view to being fully invested within twelve months of launch."

[speedsgh] 02/11/2018 18:42

Acquisition of Sixth Asset post IPO and Completion on Third Asset (1/11/18) -

PURCHASE AGREEMENT SIGNED FOR THE ACQUISITION OF SIXTH ASSET LOCATED IN OSS, THE NETHERLANDS, FOR €15.7 MILLION

The Board is pleased to announce that the Company has 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 will start 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...

[speedsgh] 01/10/2018 12:15

Outlook (from Investment Manager's Report)

Demand drivers remain strong. Imports continue to rise while labour markets are tightening through six consecutive years of sustained employment growth. Such has been the growth in demand that some contract logistics providers are reporting capacity constraints, operating with very low levels of idle warehouse space - some with as little as 2% spare capacity. E-fulfilment space continues to be sought and, notably, Alibaba has leased its first unit in Germany and is reportedly looking for additional space in Europe. With estimated quality European logistics vacancies falling below 5% in Q2 2018 this reduction in vacancy rate reflects strong take-up activity and relatively limited new speculative development.

Net operating income should grow as occupancy rates rise, inflation comes through in indexation in lease terms and headline rents continue to edge upwards in supply constrained markets. We are forecasting unleveraged logistics total returns to reach mid-high single digits per annum over the next 3 years. There is no doubt, however, that yields in certain countries have seen increased compression with the very strong weight of capital targeting distribution warehouse assets.

While the overall prognosis for logistics is positive, we believe that there will be a growing differentiation between different types of logistics property. The changing drivers of demand, be it shorter supply chains resulting from greater mechanisation in the manufacturing process, or the growth in business to consumer e-commerce, will have a differentiating influence on the demand for different types of space - and ultimately income growth prospects for investors. While the 'big-box' international supply chain structure remains very valid, the demand for last-mile distribution is changing rapidly. The growing requirement from consumers to receive items within 24 hours of ordering has driven increasing demand for distribution space close to large conurbations.

Careful attention will need to be paid to units which constitute suitable urban logistics locations, with even ageing stock likely to be attractive to tenants and investors if the location is good enough. In contrast, given the growing cost pressures for contract logistics providers, increasing focus will be on the location and structural suitability of units in more peripheral locations with transport and fuel costs rising.

Furthermore, we remain focussed on environmental concerns which are rightly becoming more important to local government decision making. We expect that certain investors will avoid inefficient units in naturally sensitive areas. In time, these are likely to be penalised through a lack of tenant demand, levies on landlords owning vacant property and legislative requirements to improve inefficient properties before they can be let, as is the case in the UK.

[speedsgh] 01/10/2018 12:14

HALF YEARLY REPORT FOR THE PERIOD ENDED 30 JUNE 2018 -

Outlook (from Chairman's Statement)

The Company has acquired or contracted to acquire five properties which are either closed and income producing (Flörsheim and Ede) or have SPAs signed where the Company is awaiting final closing depending on the delivery date of these new projects (Erlensee, Leon and the French asset). The Company has also entered exclusivity and is in due diligence on four further transactions representing a total value of over €100 million. At the same time the Company is involved in the bidding process on several others. The Board has been pleased with the deployment of capital into quality assets across Europe underlining the Investment Manager's capacity to execute such a pan-European strategy thanks to its local offices across all main investment markets in Europe. The Investment Manager's strong pipeline gives confidence that the portfolio will be fully invested within the estimated 12 month timeframe.

The Board and the Investment Manager believe the medium to long term outlook for the logistics sector remains very favourable. Given the strong tailwinds from healthy economic output and structural shifts in consumption patterns, demand drivers are likely to remain supportive, while construction levels remain relatively low. Development finance is still a barrier to a substantial increase in construction, while investors are more cautious of large scale speculative development projects.

Shareholders will be aware that the Company's prospectus contained details of a placing programme that will expire on 16 November 2018. The Board continues to consider the timing of a further fundraising and, in particular, whether a subsequent issue of new shares in this timeframe would be sufficiently beneficial to existing shareholders.

The Board is pleased with the current investment programme and the quality and diversity of the portfolio that our Investment Manager is constructing. However, it is the Board's desire to see the Company grow sensibly in size and it will continue to monitor the conditions required, including yields, quality and outlook for the sector...

[jaws6] 05/9/2018 15:10

so far good here in this yo yo mkt.

[speedsgh] 05/9/2018 15:01

First Interim Dividend -

The Directors have today declared a first interim dividend of 0.7p per Ordinary share, in respect of the period from initial launch to 30 June 2018. This is in accordance with the intention stated in the IPO Launch Prospectus to target a first dividend of no less than 0.7p per Ordinary Share in respect of the period from initial admission of the Company's Ordinary shares to the Official List of the UK Listing Authority (being 15 December 2017) to 30 June 2018.

The first interim dividend will be paid on 28 September 2018 to Ordinary shareholders on the register on 14 September 2018 (ex dividend date of 13 September 2018).

The Company intends to declare quarterly dividends to Shareholders, with dividends declared in respect of the quarters ending on the following dates: 31 March, 30 June, 30 September and 31 December in each year. The Company expects to pay, in aggregate, dividends totalling no less than 3.0p per Ordinary Share in respect of the period from initial admission to 31 December 2018.

The Company will be publishing the Half Yearly Results for the period from launch to 30 June 2018, including an update on the portfolio, in the week commencing 24 September 2018.

[mach100] 24/8/2018 13:20

Hi Berkshire. You have a point re the costs etc but these guys know what they are doing. It is a European version Tritax Bbox which has performed excellently so I have confidence in these guys. BBOX went from 100 to 150 and I have been reinvesting divis all the way along. This low income rate environment will last quite a while and income hungry investors love the visibility. I think this has further to go.

[speedsgh] 21/8/2018 10:14

European logistics yield falls below 6% for first time on record -

The overall European logistics yield dropped 14bps to 5.95% in Q2 2018, the first time it has fallen below 6% since Cushman & Wakefield began consistently tracking the three main property sectors in 1992, according to the firm’s DNA of Real Estate report.

All logistics markets monitored in Germany, Italy and Sweden recorded inward yield movements during the second quarter, and a couple of UK locations also contributed to the overall shift down to 5.95%. About a third of the monitored office locations saw some yield compression with a prime weighted average down from 4.49% to 4.42%. In contrast, high street retail yields softened in a few locations and the overall prime yield moved out by 1bps to 4.19%. Despite the fall in the prime logistics yield below 6%, the gap relative to office and retail is still higher than in the previous cycle.

Office rents grew at a robust rate of 0.8% q-o-q with several markets – across different countries and regions in Europe – seeing increases up to 5%. Limited rental growth was recorded in the retail sector while rental correction in Turkey offset this growth, resulting in the weighted average rent 0.1% lower than the first quarter...

Logistics

Five out of the 45 monitored logistics markets saw some rental growth and all other markets remained flat in Q2. Manchester recorded solid growth of 16.7% q-o-q and 25% y-o-y supported by major leasing transaction activity this quarter. Elsewhere, pockets of growth were found in Helsinki (+4.3%), Budapest (+3.9%) and Rome (+3.8%).

Average yield fell by a substantial 14bps q-o-q and 42bps y-o-y which is the largest annualised reduction in the past nine quarters. Logistics yields fell in 15 out of the 45 monitored markets including all locations in Germany, Italy and Sweden. Benelux and CEE markets, on the other hand, had less substantial yield compression.

Lisa Graham, Head of EMEA Industrial and Logistics Research & Insight, Cushman & Wakefield, added: “Logistics properties have increasingly become a desirable asset for real estate investors on the back of the growth for e-commerce and the streamlining of supply chains, and now account for a growing share of investment activity supporting a strong reduction in yields over this period. Yields in almost all monitored markets are at their 10-year low, although we believe there is still room for further downward movement in selected markets during the second half of the year.”...

[speedsgh] 13/8/2018 09:32

Net Asset Value as at 30 June 2018 -

Aberdeen Standard European Logistics Income PLC announces its unaudited quarterly Net Asset Value ("NAV") as at 30 June 2018.

Highlights

-- NAV per share of EUR1.11 (31 March 2018 - EUR1.11) as at 30 June 2018 (GBP - 98.3p, 31 March 18 GBP- 97.4p)

-- On 8 June, the Company announced that it has exchanged contracts to acquire a new development in a modern logistics hub located in Erlensee Langendiebach, Frankfurt for an expected net value of EUR33.3 million (subject to final rental conditions and full occupancy) from regional developer Ferdinand Fäth. Gross initial yield is 5.1% reflecting forecast passing rent and full occupancy. The target date for completion is end October 2018. An earn-out agreement means that the Company will pay the purchase price, based on the effective letting of the building, after completion of the construction works with a minimum occupancy rate to be delivered by the developer which has already signed lease agreements with two high quality tenants. Full take-up is expected for this prime asset by or around the time of completion.

-- Post the period end three other assets have been acquired:

o Conditional contracts to acquire a new freehold distribution warehouse in France, for an expected net value of EUR44.5 million at a gross yield of 5.29%. The property is fully leased out on a firm 9 years lease (fully indexed) to a leading supermarket chain in France. Contracts are expected to become unconditional by no later than 30 October 2018.

o A new logistics warehouse in the North of Spain for a net value of EUR15.3 million. The warehouse is currently under development with completion expected by mid-2019. On completion, the property will be fully let to a large international retailer on a fixed ten year lease with annual CPI indexation. The gross yield is 6.9%.

o A 39,840 square metres freehold logistics warehouse in Ede, Netherlands for a net value of EUR26.5 million from David Hart Group. A fully CPI-indexed lease has been signed with Dutch retail and pharmacy operator Kruidvat (part of the A S Watson Group) which commenced on 1 August 2018 for a period of 10 years (with no break option). A large part of the warehouse will be used to expand the company's growing e-commerce business. The estimated gross yield on the property is 6.3%.

-- Continued strong demand for the Company's shares. As at 31 July 2018 the share price was GBP1.075p - a premium to the 30 June 2018 NAV of 9.4%.

Investment Manager Commentary

We are on course to invest the proceeds from the Initial Public Offering ("IPO") by the end of the year, as we indicated in the IPO prospectus, with a number of assets in advanced stages of due diligence or in the pipeline. In addition we are already considering our debt options in order to fund additional acquisitions once the IPO proceeds have been fully utilised.

We believe the medium to long term outlook for the logistics sector remains very favourable. Given the strong tailwinds from healthy economic output and structural shifts in consumption patterns, demand drivers are likely to remain supportive, while construction levels remain relatively low. Development finance for speculative developments is still a barrier to a substantial increase in construction. Yields have compressed sharply, but we expect further compression over the next 12 to 24 months. Net operating income should grow as occupancy rates rise, inflation comes through in indexation in lease terms and headline rents continue to edge upwards in supply constrained markets. We forecast logistics total returns to reach mid-high single digits per annum over the next 3 years...

[berkshires thataway] 09/8/2018 12:36

It's great to see that ASLI has now invested in 5 assets.

Does anyone else harbour some concern about the gross yields that are being achieved on them? They all seem to be in the 6-7% range. Assuming 1-1.5% of costs, weighted average debt costs of, say, 3.5%, and gearing of 50%, I struggle to see how they can achieve an equity yield higher than about 6.5%. That doesn't take into account all the other costs associated with running the trust (professional fees, board costs, investment management fees).

Given they're all brand new assets with new leases to tenants, there's going to be minimal opportunity for active management of the properties, so I'm struggling to see how they're going to generate decent returns, and therefore don't feel the current premium is justified.

[speedsgh] 06/8/2018 16:31

Acquisition of Fifth Asset Following IPO -

The Company is pleased to announce that it has signed an agreement to acquire a freehold logistics warehouse in Ede in the Netherlands for a net value of €26.5 million from David Hart Group. A fully CPI-indexed lease has been signed with Dutch retail and pharmacy operator Kruidvat (part of the A S Watson Group) which commenced on 1 August 2018 for a period of 10 years (with no break option). A large part of the warehouse will be used to expand the company's growing e-commerce business. The estimated gross yield on the property is 6.3%.

Ede, which has over 110,000 inhabitants, is centrally located in the Netherlands and is well positioned for national distribution. The proximity of major roads and railways offers fast connections to the Port of Rotterdam, Schiphol airport and the Ruhr area in Germany. The site is easily accessible by road thanks to its location alongside the A12 Rotterdam to Germany autoroute and the A30 to the north.

The property is located on the Heestereng Business Park, a large mixed use site encompassing logistics, wholesale and production companies. Examples of Third Party Logistics or 3PL operators located there are DB Schenker, Van de Hoef Logistiek and Alon Logistiek.

Ede is also well-known as the "Food Valley" in the Netherlands with a high concentration of science, business and research institutes in the region with a focus on food. Wageningen University & Research is the expertise heart of this strong region, and companies like Unilever and Friesland Campina have their R&D divisions there. The opening of the World Food Centre in Ede in mid-2020 will improve this position with this specialist economic cluster of businesses serving as a magnet for further activity.

The property itself, which has recently undergone improvement works, has a total area of 39,840 square metres comprising warehouse and mezzanine space and an office building with 90 dedicated parking spaces. Specifications are very modern with eaves height of 12.2 meters, 18 docks and 5 ground level doors. The warehouse separately has 200 parking places on site together with extensive trailer parking.

Evert Castelein, the Company's Fund Manager, commented:
"The deployment of capital into quality assets in France, Germany, Spain and now the Netherlands underlines the diverse nature of the portfolio which we are creating by investing across Europe. Following the two acquisitions in Germany and recent announcements regarding the purchase of properties in Avignon (France) and Leon (Spain), this purchase means that we have now committed capital to purchase five assets totalling over €139 million. Negotiations remain ongoing to acquire further properties in Germany and Sweden representing further investment volume of approximately €70 million, whilst the pipeline of opportunities remains strong.

We are extremely pleased to have signed this latest purchase agreement for this logistics asset, which is located in a central position in the Netherlands. This property will generate a strong, sustainable and indexed income stream thanks to the quality of the location, the modern specifications of the asset and the long-term lease."

[speedsgh] 26/7/2018 16:56

Acquisition of Fourth Asset Following IPO -

ACQUISITION OF NEW ASSET - LEON, NORTHERN SPAIN FOR €15.3 MILLION

The Company is pleased to announce that it has signed an agreement to acquire a new logistic warehouse in the North of Spain for a net value of €15.3 million. The warehouse is currently under development with completion expected by mid-2019.

The property is located in a logistics park near Leon city centre and 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 once completed will be approximately 32,600 square metres. This will be 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.

On completion, the property will be fully let to a large international retailer on a fixed ten year lease with annual CPI indexation and the net yield is expected to be 6.0%. 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.

Evert Castelein, the Company's Fund Manager, commented:
"We are very happy to have signed a purchase agreement for this project, which is located in an ideal position in the North of Spain. This property will be able to generate a sustainable and indexed income stream thanks to the quality of the location, the modern specifications of the asset and the long-term lease.

The signing of this latest agreement, following the announcement regarding the purchase of a property in Avignon, France, yesterday, means that we have now committed capital to purchase four assets across Europe totalling €113 million. We are currently in negotiations with vendors to acquire further properties in Sweden and The Netherlands representing a further investment volume of approximately €97 million. The deployment of capital into quality assets so far in France, Germany and Spain underpins our desire for a diverse portfolio invested across Europe and the pipeline of opportunities remains strong."

[speedsgh] 25/7/2018 18:19

Acquisition of Third Asset Following IPO -

ACQUISITION OF NEW DISTRIBUTION CENTRE IN FRANCE FOR €44.5 MILLION

The Company is pleased to announce that it has exchanged conditional contracts to acquire a new freehold distribution warehouse in France, for an expected net value of €44.5 million. Contracts are expected to become unconditional by no later than 30 October 2018.

The newly-built facility is let to a strong tenant on a fully indexed twelve year lease and is well positioned in an excellent location with the versatility required to move to a multi-tenant scenario if needed in the future.

Further details shall be released when contracts become unconditional.

Evert Castelein, the Company's Fund Manager, commented:
"We are delighted to have exchanged contracts for this state-of-the-art logistics asset which is located in a strategic position in France. The high-quality specification makes this a very desirable asset.

This investment will give us exposure to the French logistics market in a fast-growing region, in an industry that leads regional economic growth and with a strong tenant and a state of the art quality building, which is very well connected to major motorways. The asset will provide a durable income stream.

We continue to see healthy deal flow and are currently in negotiations with vendors to acquire further properties in Spain, Sweden and The Netherlands representing a further investment volume of over €110 million. We remain very pleased with the phased deployment of capital to date into what we consider to be a quality and well diversified portfolio of logistic assets."

[speedsgh] 08/6/2018 10:09

Acquisition of Second Asset Following IPO -

'ZUM FLIEGERHORST 1304' LOGISTICS DEVELOPMENT, ERLENSEE FOR €33 MILLION

The Company is pleased to announce that it has exchanged contracts to acquire a new development in a modern logistics hub located in Erlensee Langendiebach, Frankfurt for an expected net value of €33.3 million (subject to final rental conditions and full occupancy) from regional developer Ferdinand Fäth.

The acquisition will be funded from existing cash, following the successful launch of the Company in December 2017, with completion expected in September 2018.

This freehold property development is expected to be completed in September and will consist of two modern multi-let logistic buildings. It is located within the emerging logistics and distribution hub of Erlensee, on the outskirts of Frankfurt in the prosperous Rhine/Main region, the third largest metropolitan region in Germany with 5.8 million inhabitants. The redevelopment of this former US air base is proceeding at pace. The location's quality has already been recognised by a number of major companies including DS Smith, Dachser Logistics and Wilhelm Brandenburg, the largest meat processing company in the region, with plans for a major facility servicing REWE the German supermarket group. It is expected to become one of the major logistics hubs in the region benefitting from an excellent road infrastructure serviced by the A45 and A66 motorways in the north east of Frankfurt and in the south by the A3 motorway, as well as having direct access to the Frankfurt metropolitan area.

This development fits well with the Company's investment strategy given the modern and flexible specifications of the buildings and the central location. The buildings comprise a total lettable area of approximately 26,395 square metres featuring high quality construction and institutional grade specifications including a total of 50 loading doors. Net initial yield is expected to be in the region of 5.4% reflecting forecast passing rent and full occupancy.

An earn-out agreement means that the Company will pay the purchase price, based on the effective letting of the building, after completion of the construction works with a minimum occupancy rate to be delivered by the developer which has already signed lease agreements with two high quality tenants. Full take-up is expected for this prime asset by or around the time of completion.

Evert Castelein, the Company's Fund Manager, commented:
"We are extremely pleased with this premium development opportunity which we expect to close in September 2018. With the support of our local Frankfurt based asset management team we are confident that we can generate a solid and sustainable income stream from an asset located in an area in which we see strong demand for modern, best in class logistics facilities.

Our pipeline of investment opportunities remains strong across Europe. A number of further properties are undergoing due diligence or have price agreements in place and announcements will be made at the appropriate time. We remain confident that the deployment of capital is proceeding as planned as we continue to build a well-diversified portfolio of high quality European logistics properties aiming to be fully invested within twelve months of launch."

[speedsgh] 08/5/2018 08:47

Net Asset Value as at 31 March 2018 -

Highlights

-- NAV per share of EUR1.11 as at 31 March 2018 (GBP - 97.4p).

-- The Company has acquired Flörsheim Logistics Park, Frankfurt for a net value of EUR20.1 million from SEGRO Zehnte Grundbesitz GmbH. Made up of two high quality logistics warehouses newly constructed in 2015, this is a modern, multi-let freehold asset providing flexible accommodation for occupiers. Flörsheim is fully let to five logistic tenants and benefits from almost full annual rent indexation (CPI) and a weighted average unexpired lease term excluding breaks (WAULT) of 7.6 years with a current net yield of 5.0%.

-- Continued strong demand for the Company's shares. As at 30 April 2018 the share price was 105.5p - a premium to the 31 March NAV of 8.3%.

-- The Company cancelled its share premium account, creating a new special reserve containing distributable profits. This new reserve may be used by the Company to fund, amongst other things, dividend payments and share buybacks. The cancellation took effect from 16 March 2018.

Investment Manager Commentary

The Investment Manager remains confident in the broad and consistent pipeline of logistics asset opportunities across Europe accessed through its established platform, local offices and wide-ranging relationships. We have recently entered into heads of terms granting exclusivity on behalf of the Company over the acquisition of two European logistics assets valued at EUR48.5 million in aggregate, and we have several other bids pending with an aggregate value of over EUR130 million. The Company will issue further announcements providing additional details in the event that the relevant bids are successful, due diligence is completed satisfactorily and contracts are exchanged.

We remain pleased with the pipeline and the opportunities seen across the region. Portfolio construction remains an essential tenet of the investment process, with an initial focus on major logistics hubs and 'last mile' facilities. The logistics sector continues to offer yields which provide a significant premium over current financing costs, and tenants that include financially robust major retailers, e-commerce businesses, distribution specialists and manufacturers.

The rapid growth of e-commerce, supply chain reconfiguration amongst existing operators and increased globalisation of traded goods are continuing trends creating demand for high quality modern facilities, often in densely populated areas where land is scarce, offering the opportunity to secure indexed leases and capital growth. We believe the medium to long term outlook for the logistics sector remains very favourable. Given the strong tailwinds from healthy economic output and structural shifts in consumption patterns, demand drivers are likely to remain supportive, while construction levels remain relatively low. Development finance is still a barrier to a substantial increase in construction. Net operating income is expected to grow as occupancy rates rise, inflation comes through in indexation in lease terms and headline rents continue to edge upwards in supply constrained markets...

[speedsgh] 23/3/2018 18:13

Share Premium Account Cancellation and Investment Update -

Share Premium Account

The Board of Aberdeen Standard European Logistics Income PLC (the "Company") hereby announces that, as envisaged in the IPO prospectus of last November, the Company has now cancelled its share premium account so as to create a new special reserve containing distributable profits. This new reserve may be used by the Company to fund, amongst other things, share buybacks. The cancellation took effect from 16 March 2018.

Investment Update

The Board is also pleased to confirm that the acquisition of the Flörsheim Logistics Park, Frankfurt, for €20.1 million has now completed, with rental income being received from 1 February 2018. Flörsheim is fully let to five logistic tenants, benefits from almost full annual rent indexation (CPI) and fits well with the Company's investment strategy.

The Investment Manager remains confident in the pipeline of logistics asset opportunities, having recently entered into exclusivity arrangements in respect of two European logistics assets valued at €48.5 million in aggregate, and with several other bids pending. The Company will issue a further announcement providing additional details in the event that the relevant bids are successful and contracts are exchanged.

[speedsgh] 09/1/2018 08:56

Acquisition of First Asset Following IPO (8/1) -

The Company is pleased to announce that it has exchanged contracts to acquire Flörsheim Logistics Park, Frankfurt for a net value of €20.1 million from SEGRO Zehnte Grundbesitz GmbH.

The acquisition will be funded from existing cash, following the successful launch of the Company on Friday 15 December 2017, with a deal closing expected towards the end of January 2018.

This first investment fits well with the investment strategy given the modern and flexible specifications of the building and the central location in the Frankfurt Rhine-Main area, one of Germany's strongest economic regions with almost 6 million inhabitants. The park is strategically located just five kilometres south west of Frankfurt airport alongside the A3, one of Germany's main cross border motorway routes. Total property size is 17,809 square metres comprising two high quality logistics warehouses newly constructed in 2015 on freehold ground. Flörsheim is fully let to five logistic tenants and benefits from almost full annual rent indexation (CPI) and a weighted average unexpired lease term (WAULT) of 5.5 years.

Evert Castelein, the Company's Fund Manager, commented: "We are very pleased with this first acquisition by the Company. With the support from our local Frankfurt based asset management team we are confident that we can generate a durable income stream from this asset and remain confident about the pipeline of further investment opportunities."

[jaws6] 03/1/2018 13:13

good rise today 104.5

[greatgiginthesky] 29/12/2017 13:06

riverman, with the assets and rent being in euros, that is the hedge against a sterling fall. What is needed is a hedge against sterling rising, which kinda defeats the objective for me of being invested abroad, so I hope they don’t hedge against a euro fall.

[jaws6] 22/12/2017 10:11

Tick better at last.