Abrdn European Logistics... Share Discussion Threads

[speedsgh] 25/9/2019 08:00

from HALF YEARLY REPORT...

INVESTMENT MANAGER'S REVIEW (cont'd)

ESG a key driver for future performance

... During H1 2019 the Investment Manager explored various options to build on ESG across the portfolio and has identified several well defined projects to execute during 2019 and beyond. A current focus is investigating the leasing of warehouse roofs to solar energy investors and/ or installing solar photovoltaic cells on properties in the portfolio. We currently have one such agreement in place at the asset in Avignon where the roof is leased to Larcos for €160,000 per annum on a 20 year term. We are in the final stages of negotiating lease agreements in Ede and 's Heerenberg, both on 17 year terms, and have applied for government subsidies in Oss and Zeewolde.

An experienced consultant is advising us with the implementation of solar panels on the assets outside of the Netherlands...

Capital growth reflected in higher valuations

In the first half of 2019, property values have increased by 2.8% to €272.7 million. This is based on 30 June 2019 valuations and purchase prices excluding acquisition costs for new investments made in the period. The capital growth is mainly driven by an inward yield movement.

Capital appreciation will also be triggered through annual indexation of rents and market rental growth supported by strong demand for logistics assets, a lack of supply and increasing construction costs for new developments.

Pipeline

The additional equity capital raised in July will enable us to acquire two brand-new warehouses in the Netherlands and Poland where we have strong ties through our dedicated ASI transaction managers. Both warehouses have a strong urban location, with the Polish one as a prime example of urban logistics, being very close to the city centre. The additional diversification these deals will bring will benefit the portfolio and further diversify the tenant base. More information will be released following due diligence once the assets are acquired.

Outlook

As an investment, the logistics sector remains a very compelling asset class thanks to strong market fundamentals especially in the most liquid part of the market that the Company has invested in. We believe growth in the sector is structural in nature, and not cyclical, with the rise of e-commerce as a key driver. Strong demand from investors and the lack of modern facilities for logistics companies should support property values and capital growth, not only through keener yields but also with the prospect of increasing rents.

We believe the current portfolio is in a very good position to deliver its target returns. Property quality is high, with six newly built warehouses in the portfolio, all with long indexed leases to financially strong counterparties. With our local asset managers we are strongly focussed on keeping our tenants satisfied and the buildings in good shape. Also, we seek to add additional value through active asset management with an ever stronger focus on ESG.

[speedsgh] 25/9/2019 07:58

from HALF YEARLY REPORT (cont'd)...

INVESTMENT MANAGER'S REVIEW

... Logistics sector benefiting from strong fundamentals

The demand for logistics investment in Europe remains strong, with investment activity at high levels and with capital values recording strong growth in most markets. Some of this appreciation in value is driven by higher investment demand and lower required rates of return sought by investors, but we are also seeing increasing market rents as a driver in many markets. The capitalisation of higher rental levels is expected to become an additional source of value growth over the next few years, particularly in the urban logistics segment and in key logistics areas where land supply constraints are limiting new developments.

We believe that many of the key drivers behind the demand for logistics space in Europe remain strong and are likely to be long-term and structural in nature rather than simply linked to the economic cycle. Despite the more recent benign levels of economic output, the structural shifts in consumption patterns and overall demand drivers are likely to remain supportive, while construction levels remain relatively low.

While the overall outlook for logistics is positive, we believe there will be a growing differentiation between different types of logistics property. Our research suggests that both the location and the efficiency of the asset are becoming increasingly important, and that tenants are increasingly focused on the environmental impact of their logistics operations. These are important criteria to be considered when building a real estate portfolio that will benefit from this strong fundamental demand for logistics in Europe.

Well-diversified property portfolio with modern specifications

... We consider ourselves to be long-term investors and seek to hold the warehouses in the portfolio for a long period of time in order to keep transaction costs low. The average lease length of the portfolio (including 's Heerenberg) is 9.1 years including breaks and 10.2 years excluding breaks all with indexed leases with strong covenant tenants. This puts us in a good position regarding both income generation and capital growth.

Income boosted by low financing costs

Monetary easing has created very attractive financing conditions, especially on the Continent. All-in interest rate costs for the portfolio, once all loans are drawn, will be approximately 1.4% with an average duration of 7 years. The recent addition in 's Heerenberg, which closed in July, has seen the best rate achieved to date, at 0.94% per annum over a six year term. Interest fixing for the loan facility in Oss will take place at drawdown, most likely in October, and will be added to the existing portfolio financing for Ede and Waddinxveen. The debt strategy of the Company is to finance properties in the countries where financing costs are lowest such as the Netherlands, France and Germany and to diversify loan maturities as much as possible. The target LTV for portfolio structural gearing remains at or around 35% and this is the level the Manager expects to achieve with the conclusion of the loan facilities for 's Heerenberg and Oss.

An additional credit line of GBP 6 million is in place at the Company level, financed by Sociéte Generale, to fund working capital requirements. Together with a group of banks, the Investment Manager is currently investigating the implementation of a larger revolving credit facility in order to provide more flexibility to fund additional purchases or provide funding guarantees.

[speedsgh] 25/9/2019 07:52

from HALF YEARLY REPORT (cont'd)...

CHAIRMAN'S STATEMENT

Outlook

The Board and the Investment Manager believe that a well-diversified portfolio of eleven assets spread across five European countries with long indexed leases has been built up in a market that will continue to offer attractive opportunities. The logistics market is sizeable and continues to grow as the sector benefits from the rapid take-up of logistics facilities, largely helped by the growth in e-commerce, and the long inflation-linked leases that quality tenants are prepared to sign up to in many parts of Europe. This strategy which is focused on investments on the Continent with attractive pricing, indexation of leases as standard and lower financing costs underpins our investment policy.

As supply chain management gains importance due to growing e-commerce and ongoing urbanisation, prime logistics space may become scarce. The market has started to reflect this with increased pricing and lower yields which underpins valuations. However, with vacancy rates at historic low levels, rising construction costs and strong demand for modern warehouses, it is anticipated that rental growth will become an important driver for future capital growth in supply constrained areas.

Asset selection, price and tenant quality are key considerations and our Investment Manager has continuously sought to add to and improve the portfolio with this in mind. As the Company seeks to deploy the recently raised funds these factors will be imperative in determining the shape of the portfolio. Once committed, and as markets allow, the Company will continue to build on these foundations and to seek to grow the Company to provide shareholders with a more liquid and diversified investment opportunity in this sector.

Our Investment Manager's asset management team across Europe seeks to add value where possible. This can take the form of extensions to buildings or the addition of solar roof panels to add incremental revenues. ESG is an important element of the Investment Manager's investment process and increasingly discussed by our tenants helping to ensure it is a strategic focus for us.

The European logistics sector continues to grow with the increasing demand from market participants for newer quality warehousing driven by their demand for increased space and the rise in ecommerce operations. The sustainable, inflation protection that we see from longer term leases that our tenants are prepared to enter into and their commitment through increased capital spending on internal fittings should give shareholders assurance of the income and growth strategy that the Company is pursuing. Our Investment Manager continues to see opportunities across a variety of European countries and the intention remains to grow the Company through regular equity raises as and when market conditions allow.

[speedsgh] 25/9/2019 07:50

HALF YEARLY REPORT FOR THE PERIOD ENDED 30 JUNE 2019 -

The Company reports:
- NAV total return increased by 2.2% to 108.6 euro cents (97.1p) as at 30 June 2019;
- First and second quarterly distributions declared in period totaling 2.82 euro cents (2.54p);
- The additional €51.8 million (£46.4 million) equity capital raised in July will enable the company to acquire two brand-new warehouses in the Netherlands and Poland.

Tony Roper, Chairman of the Company, commented:
"This solid performance was predominantly driven by the Company's well diversified, high quality and modern portfolio delivering a total property return of 1.78%."

Evert Castelein, portfolio manager, commented:
"The key drivers behind the demand for logistics space in Europe, such as e-commerce, remain strong.

We have been able to build a high quality, well-diversified property portfolio with eleven investments in five countries and twenty eight strong covenant tenants. We have invested in the most liquid part of the logistics market with an average investment price close to €27.0 million and an average building size of 28,000 square metres. This is an active part of the logistics market giving us plenty of options in terms of potential businesses from a wide range of sectors to lease to."

[apollocreed1] 24/9/2019 15:00

In light of the negative economic data coming out of Europe, in particular Germany, does anyone think that a recession in Europe will cause the value of ASLI's assets to fall?

[speedsgh] 06/9/2019 12:40

Second Interim Dividend -

The Directors have today declared a second interim dividend of 1.41 euro cents (equivalent to 1.27 pence) per Ordinary share, in respect of the year ending 31 December 2019. This second interim dividend will be paid in sterling on 7 October 2019 to Ordinary shareholders on the register on 20 September 2019 (ex-dividend date of 19 September 2019)...

... Of this second interim dividend declared of 1.27 pence per Ordinary share, 1.19 pence is declared as dividend income with 0.08 pence treated as qualifying interest income.

[speedsgh] 03/9/2019 10:49

Agreed. Like this sub-sector. Wider European geographical exposure is however a double-edged sword; strutural shifts in consumption patterns in mainland Europe not as far advanced along the curve as UK suggesting possible greater upside; long index-linked leases also v attractive; but not convinced that the current dividend level (which has already been reduced to 5% yield in Euro terms from original policy at IPO of 5.5% in Euro terms) compensates enough for the FX risk.

Might be tempted to add to existing small holding if a wider market sell-off dragged it down to 85p area.

[hugepants] 03/9/2019 08:13

I quite like this one. A major issue though is you are buying euros which are historically expensive versus sterling.

[speedsgh] 30/8/2019 12:39

Current offer price 92.8p equates to EUR 1.033 which represents a 4.4% discount to NAV of EUR 1.07 as at 30/6/19.

Current offer price 92.8p is also a 6% discount to the 98.75p placing/open offer in July.

[speedsgh] 30/8/2019 12:03

Net Asset Value as at 30 June 2019 -

Highlights

-- NAV per Ordinary share of EUR1.07 as at 30 June 2019 (31 March 2019 - EUR1.06) (GBP - 95.85p, 31 March 2019 GBP - 91.13p). Exchange rate GBP1:EUR1.11 (31 March 2019: GBP1:EUR1.16).

-- Portfolio capital value has increased by 1.7% since 31 March 2019 (after capital expenditure and acquisition costs, including those relating to the Leon warehouse acquired in the quarter). The Company's high quality and well-diversified European logistics portfolio is now valued at EUR272.7 million.

-- In July, the Company raised gross proceeds of GBP46.4 million (EUR51.8 million at the then prevailing exchange rate) through a placing, open offer and offer for subscription of Ordinary shares, with the proceeds expected to be deployed shortly in the acquisition of two logistics warehouses in Poland and the Netherlands.

-- A new 12-month share issuance programme put in place providing the Company with the flexibility to raise fresh equity proceeds for deployment in a timely and cost-effective fashion through the issue of up to 200 million Ordinary Shares and/or C Shares in aggregate.

-- The first interim dividend of 1.27 pence per Ordinary share in respect of the year ending 31 December 2019 was paid on 10 July 2019...

INVESTMENT MANAGER COMMENTARY

At the end of June, following the addition of the newly built warehouses in Oss and Zeewolde, together with the completion of Leon, the Company's portfolio consisted of ten properties, spread across five countries, with a total net market value of EUR272.7 million. In July, the portfolio increased to eleven properties following the completion of 's Heerenberg for EUR24 million.

ASLI's portfolio is geographically well-diversified, with assets located in the Netherlands, one of the most attractive logistics markets in Europe, representing the largest allocation in the portfolio (44% of gross asset value incl. 's Heerenberg). As at 30 June, the weighted average unexpired lease term of the portfolio was 9.1 years including breaks and 10.2 years excluding breaks (both incl. 's Heerenberg).

The debt strategy of the Company is to finance properties in countries such as the Netherlands, France and Germany, where funding costs are low. We were particularly pleased with the June financing, secured against assets in Ede, Oss and Waddinxveen for a total amount of EUR37.7 million over a fixed six year term, which was implemented at an attractive all-in interest rate of 1.22% per annum. In July, the EUR8 million fixed six year loan secured on 's Heerenberg proved even more competitive as Euribor slid further into negative territory.

The additional equity raised in July will enable us to acquire two newly built warehouses in the Netherlands and Poland where we have strong ties through our dedicated transaction managers. These acquisitions will further diversify the portfolio and tenant base, with completion announcements expected in September/October following the conclusion of our detailed due diligence process. After completion of these investments, gearing is expected to stay close to the targeted 35%.

Aberdeen Standard Investments is the second largest property investor in Europe (in terms of assets under management) and benefits from both transaction and asset management teams based locally across all major European logistics hubs, differentiating us from many other investors. Thanks to a team-based approach we have built a very well-diversified, high quality property portfolio (eight warehouses are newly built) with long leases to strong covenant tenants. Adding value to the portfolio is a key objective with the installation of solar photovoltaic cells a key focus over the next 12 months. We aim to further improve the Company's green performance with additional initiatives and we will maintain active engagement with our tenants to ensure their ongoing satisfaction with the properties they occupy. In addition, we will continue to pro-actively explore extension opportunities for certain properties with low site coverage, working closely with our tenants as they seek to grow their businesses.

The European logistics market continues to modernise rapidly with growing tenant demand fuelled by the rapid growth of e-commerce across Europe and the consequent supply chain reconfiguration as operators embrace the rapid pace of technological advancement. Of note is the acceleration of interest and demand amongst logistics occupiers to adhere to higher ESG standards and we recognise and embrace this fundamental change in occupational demand for suitable buildings.

We believe that there continues to be attractive occupier dynamics in the market that will support income growth, and ultimately increasing capital values, underpinned by longer, index-linked leases which typically offer annual CPI adjustments providing for transparent and predictable cash flows...

Tony Roper, Chairman, commented:

"Based on healthy fundamentals, the medium to long term outlook for the logistics sector remains very favourable. Structural shifts in consumption patterns in Europe, which have lagged the UK's progress, and overall demand drivers are expected to remain supportive. Our portfolio of high-quality, well-located, warehouses with long indexed leases should underpin yield and capital growth expectations.

The recent equity issue, with the relevant gearing applied, will enable the Investment Manager to secure two additional newly built warehouses, further diversifying the portfolio by asset and tenant base. It is particularly pleasing to note the quality of the assets assembled in the portfolio by our Investment Manager. As market conditions allow, the intention remains to grow the portfolio with additional acquisitions through further capital raises using the twelve month share issuance programme approved recently by our shareholders."

[speedsgh] 29/7/2019 15:47

Aberdeen logistics trust misses £99m fund-raise target -

Aberdeen Standard European Logistics Income (ASLI), the only European property investment trust trading on a premium rating, has raised £46.4 million (€51.8 million) for further investment in 'big box' warehouses on the Continent.

This is less than half of the £99 million target the trust sought when launching the share placing and open offer last month in order to take advantage of investor demand signalled by its stock standing 10% above net asset value (NAV).

The fund-raise will boost ASLI's market value to around £230 million once the 47 million new shares issued at 98.75p start trading on Wednesday.

However, it falls short of the £52 million (€58 million) price tag for two properties on which it was holding exclusive discussions.

That's apart from the wider pipeline of opportunities fund manager Evert Castelein had spotted in big warehouses and ‘last mile’ delivery depots as Europe looks to catch up with the UK in online shopping...

[speedsgh] 29/7/2019 01:46

A rather underwhelming response to the fundraising which was looking to raise gross proceeds of up to £98.75m. Just £46.4m raised represents a mere 47% of the initial target. This is not the first IT/REIT to struggle to raise the desired funds in recent times...

Result of Placing and Open Offer -

Further to its announcement of 5 July, the Board of Aberdeen Standard European Logistics Income PLC announces that the Company has raised gross proceeds of approximately £46.4m (equivalent to approximately €51.8m at the prevailing exchange rate) through its equity fundraising by way of a placing , open offer and offer for subscription (the "Issue")...

[speedsgh] 07/7/2019 17:25

Issue of up to 100m shares at 98.75p via placing, open offer and offer for subscription to raise gross proceeds of up to £98.75m. Issue may be increased to 150m shares (gross proceeds £148m) to meet any additional demand.

Under Open offer existing shareholders are entitled to 2 Ordinary Shares for every 5 existing Ordinary Shares.

Latest time and date for receipt of completed Open Offer application forms - 11.00 a.m. 25 July 2019

Publication of Circular and Prospectus; Placing, Open Offer and Offer for Subscription, and Share Issuance Programme -

Links to Circular & Prospectus here -

[cwa1] 18/6/2019 08:04

Intention to publish a prospectus:-

[speedsgh] 17/6/2019 10:22

also from the above announcement...

NEW FINANCING

The Company is also pleased to announce that it has finalised and signed an agreement for long term financing on its Dutch properties in Ede, Oss and Waddinxveen. This secured loan facility arranged with Berlin Hyp for a total value of €37.7 million has been fixed for a six year term at an attractive all-in interest rate. Monies have been used to finance the purchase of 's-Heerenberg in addition to further stage payments on the forward funded project in Oss and final completion payment on Zeewolde.

The Board keeps 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. On completion of the purchases of Oss and 's-Heerenberg and the finalisation of bank facilities overall asset-level gearing will sit as determined by the Board at or around 35 per cent. of gross assets. This level may fluctuate as and when new assets are acquired until longer term funding has been established or whilst short term asset management initiatives are being undertaken.

Evert Castelein, the Company's Fund Manager, commented:
"This additional facility in 's-Heerenberg is another excellent addition to ASLI's property portfolio and will take the number of assets in the portfolio to eleven including the soon to be completed project in Oss. I am particularly pleased to see the handover of Zeewolde and the commencement of full income generation. This warehouse has been built to the latest standards for modern logistics and this together with the central location and the long lease with a strong covenant tenant will generate a durable income stream for the Company.

I am very happy with the quality portfolio that we have built up across five countries in Europe which reflects a highly sustainable indexed income stream which helps protect against inflation. With the additional competitive bank funding in place our asset-level gearing will sit at or close to 35% on completion of the remaining forward funded project. Investment demand in the logistics sector remains strong. Based on healthy fundamentals we believe that the medium to long term outlook for the sector remains very favourable. Despite some tailwinds from economic output in certain areas, the structural shifts in consumption patterns and overall demand drivers remain supportive, while construction levels are relatively low. We continue to see a healthy pipeline of deal flow which we apply our stringent quality criteria against."

[speedsgh] 17/6/2019 10:21

ACQUISITION OF LOGISTICS ASSET LOCATED IN 's-HEERENBERG THE NETHERLANDS FOR €24.0 MILLION AND COMPLETION ON ZEEWOLDE -

PURCHASE AGREEMENT
The Company is pleased to announce that it has signed an agreement to acquire a freehold logistics warehouse in 's-Heerenberg, The Netherlands, for a net value of €24.0 million providing an expected net initial yield of 5.0%. The transaction is expected to close in July 2019.

This is a freehold facility providing a high quality warehouse, cross dock and 40 loading bays covering almost 23,000 square metres. The total site size of 45,000 square metres offers expansion opportunities in the future.

The warehouse has an attractive income profile and is fully leased to third-party logistics operator JCL Logistics Benelux BV, a wholly owned subsidiary of JCL Switzerland AG. The lease has a remaining term of 12.5 years and is fully CPI indexed. JCL have a long history in 's-Heerenberg and provide services to their clients who produce bikes and associated parts in Asia and the USA.

's-Heerenberg itself is located close to the German border (Emmerich barge terminal) and has good accessibility to the A12 and A3 motorways with the A12 being the main connection between the port of Rotterdam and Germany. Other operators in the area include Main Freight and DSV.

ZEEWOLDE COMPLETION
The Company has also just completed on the newly built warehouse in Zeewolde, the Netherlands, for the previously indicated purchase price of €29.25 million providing a net initial yield of 5.0%. The agreement with developer Borghese was structured as a forward funded transaction with a 2.55% coupon rate.

This high quality freehold property had been pre-let to VSH Fittings B.V., a strong covenant tenant, on a 15 year lease commencing in June 2019 with capped CPI indexation of 2.4% per annum in accordance with local provisions. VSH Fittings B.V. was founded 85 years ago and is a wholly-owned subsidiary of Aalberts Industries N.V., a Euronext listed company with over 16,000 employees, 70 business locations and activities in over 50 countries. The company specialises in the production and distribution of industrial valve products and fittings used for sprinklers, heating and piping systems.

Zeewolde is in the heart of the Netherlands in the province of Flevoland, close to Almere, the fastest growing municipality in the Netherlands and Lelystad, an ideal location for national distribution. Zeewolde is also ideally situated close to several motorways, the A6, A27 and A28. In addition to its central location in the Netherlands, Zeewolde is well positioned with regards the availability of labour and the relatively low land costs, resulting in attractive rent levels.

The property is situated within an established logistics business park, alongside other well-known logistics companies. The tenure is freehold and the total plot size is 55,000 square metres, with the warehouse comprising 35,000 square metres alongside office space and 161 parking places...

[speedsgh] 03/6/2019 16:41

Net Asset Value as at 31 March 2019 -

Aberdeen Standard European Logistics Income PLC (LSE: ASLI) (the "Company" or "ASLI") announces its unaudited quarterly Net Asset Value ("NAV") as at 31 March 2019.

Highlights
· NAV per share of €1.06 as at 31 March 2019 (31 December 2018 - €1.08) (GBP - 91.13p, 31 December 2018 GBP - 96.7p). Exchange rate £1:€1.16 (31 December 2018: £1:€1.11)
· Well diversified property portfolio with ten warehouses in five different countries and 26 tenants, one further asset in advanced due diligence
· The Company's high quality, unique and well diversified European logistics portfolio is valued at €238.4 million as at 31 March 2019. Like-for-like portfolio capital value increase of 0.7% (after acquisition costs) compared to 31 December 2018 year end valuation.
· From purchase, property values have increased in aggregate by 1.4% to the end of March 2019, based on quarter end valuations and purchase prices excluding acquisition costs
· The third interim dividend of 1.3 pence per Ordinary share was paid on 22 March 2019 in respect of the period from 15 December 2017 (the date of the Company's initial admission to the London Stock Exchange) to 31 December 2018...

Investment Manager Commentary

All proceeds from the Initial Public Offering ("IPO") were invested in line with the timeframe envisioned at IPO and first financings were put in place to fund the three deals which were closed in Q1 2019. Including the acquisition that is in advanced due diligence, the Company will have 11 warehouses with modern specifications spread across 5 different countries, all located in established locations highly sought after by both tenants and investors. As our forward funding projects in Oss and Zeewolde near completion, we believe that this attractive portfolio, with long indexed leases and strong covenant tenants, will generate a solid and sustainable income stream. Asset level gearing is expected to continue to be at, or around, the target LTV of 35% assuming the successful closing of the transaction currently in due diligence.

The logistics sector remains popular amongst investors and its popularity is likely to continue, reflecting the growth in e-commerce and the globalisation trend. Strong occupier demand in combination with a lack of suitable product within the European logistics market gives us confidence that there is further scope for capital and income growth in the years ahead. The flow of logistics opportunities that fit our investment criteria remains strong. We are currently reviewing potential acquisitions that amount to approximately €250 million in aggregate value. Whilst not all of these will survive our stringent investment process, the breadth of opportunity demonstrates that the logistics market remains sound...

Pascal Duval, Chairman, commented:

"Quality of location and building are key areas of focus together with lease length and the covenant strength of our tenants. Our portfolio manager and the wider team has built a quality portfolio of ten freehold assets spread across five countries, with six of these assets being new. Leases are indexed and our manager believes that the undersupplied logistics market in Europe underpins rental growth in the future. Healthy market fundamentals, low interest rates and strong investor demand provides confidence for the future of ASLI and its potential for growth from here.

Despite strong competition in certain regions we remain convinced of the European logistics story. Strong fundamentals give us reason to believe that the Company can continue to grow and further diversify what is already a very attractive portfolio. The pipeline of potential logistics assets that fit the investment criteria remains strong and the Board together with the Investment Manager continues to believe that the Company will grow through further issuance over time. The Board will seek to update shareholders regarding further fundraising in the near future".

[speedsgh] 13/5/2019 12:59

Link to from trust website to Annual Report 2018 -

[speedsgh] 23/4/2019 09:41

Annual Financial Report -

[8w] 18/4/2019 12:08

Currency movement an issue here, stronger Pound, weaker Euro = lower divi?

[cwa1] 18/4/2019 08:14

Dipped a small toe in the water at about 94p to keep you lot company. Hopefully the downhill ski slope chart will be arrested at some point in the not too distant future. Looks sensible value unless there's something obvious I haven't spotted.....

[belgraviaboy] 17/4/2019 16:16

Bought entry position today - 5.3% yield on price paid

[speedsgh] 12/3/2019 13:15

Detailed initiation note on ASLI by QuotedData...

Aberdeen Standard European Logistics Income: Poised to expand? -

[speedsgh] 07/3/2019 14:40

Completion of Acquisitions and New Debt Facilities (6/3/19) -

Completion of Acquisitions

The Company is pleased to announce the completion of its purchase of property in Erlensee, Germany for a gross value of €33.3 million (before adjustments for retentions and rent reductions are taken account of), providing a net initial yield of 5.2%. This new development was completed in September 2018 and is situated in the modern logistics hub of Erlensee Langendiebach, not far from Frankfurt in the prosperous Rhine/Main metropolitan region. Tenants include among others the global engineering and industrial gases company Linde, packaging solutions provider DS Smith and Compass Group subsidiary and fruit and vegetable supplier MSG Frucht.

In addition, and following the recent announcement dated 20 February 2019, the Company has now completed the acquisition of the freehold logistics warehouse near Krakow, Poland for a net value of €24.5 million, providing a net initial yield of 6.8%. This property is situated in an established logistics area benefitting from proximity to Krakow, its international airport and also from easy motorway access to Silesia, Germany and the Czech Republic. The asset has an attractive income profile and is fully leased to nine tenants, all with Euro denominated CPI indexed leases.

The Company has created a unique and well-diversified European property portfolio consisting of ten freehold logistics warehouses located across five different 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.

Debt Facilities

The Company is also pleased to announce that it has entered into agreements with DZ HYP AG, the German real estate bank, for the provision of long term financing secured at local level over the Company's assets in Erlensee and Florsheim, Germany. The loan facility secured over the Company's Erlensee property has been arranged for a total value of €17.8 million and fixed for a 10 year term at an all-in interest rate of 1.62% per annum. The Florsheim debt facility is for a total value of €12.4 million and fixed for a seven year term at an all-in interest rate of 1. 539% per annum.

Evert Castelein, the Company's Fund Manager, commented:
"The loan arrangements with DZ HYP AG are both long term and at very competitive interest rates, underlining the quality of the assets in the portfolio. We continue to believe that Europe maintains a clear advantage over UK logistics assets in terms of yields and such low financing costs and that strong demand, when combined with a lack of suitable product, reinforces our belief that there is further scope for capital and income growth in the years ahead. This financing will help the Company in its aim to provide shareholders with a regular and attractive level of income return together with helping underpin this growth potential."

[shiv1986] 26/2/2019 09:27

See the latest ADVFN twitter poll about Funds: