W.P. Carey Inc., a leading net lease REIT specializing in corporate sale-leaseback and build-to-suit financing and the acquisition of single-tenant net lease properties, recently revealed that it has entered into an agreement with private developer Borghese Logistics Participaties II B.V., to expand an existing logistics facility situated in the Port of Rotterdam area in the Netherlands.
The facility is currently leased to Nippon Express Nederland B.V., the European subsidiary of third-party logistics provider Nippon Express Co. Ltd. The expansion, a modern BREEAM and FM certified logistics facility, will provide approximately 350,903 square feet (32,600 square meters) of additional floorspace to Nippon. Upon completion of the expansion the building will total 1,118,919 square feet (103,951 square meters).
W.P. Carey managing director, Greg Butchart, noted: “This development agreement demonstrates our commitment to creating long-term value for W. P. Carey’s shareholders and supporting our tenants’ growth strategies. W. P. Carey’s ability to invest additional capital in the existing facility allowed us to meet Nippon’s expansion needs while also investing in a sustainable asset. Leasing them additional space tailored to their needs on attractive economic terms enhances the value of the asset and makes the investment advantageous for all parties. We look forward to continuing our relationship with Nippon and their Rotterdam team.”
The total expansion of will provide approximately 350,900 square feet (32,600 square meters) of additional floor space to Nippon, which will be divided into 338,918 square feet (31,487 square meters) of warehouse and 14,321 square feet (1,130 square meters) of office space.
In addition, according to a prepared statement, the development of the facility is anticipated to be completed by July 1, 2019. The expansion space will be leased to Nippon for a 10-year term with annual CPI rent escalations.
The facility is located in the Maasvlakte submarket, the entry point to and one of the three main logistics submarkets of the Port of Rotterdam; Europe’s largest port and logistics hub.
W. P. Carey acquired the logistics facility in the Port of Rotterdam, Netherlands, in December 2015 for approximately $43 million (€38 million, based on the exchange rate at that time). The facility was purchased from the developer, Borghese Logistics, which completed construction of the building in October 2014 and leased the facility to Nippon.
Danny Levenswaard, Director Distribution & Warehousing, Port of Rotterdam Authority, said: “The Port of Rotterdam Authority welcomes W. P. Carey’s expansion of the facility, which is leased to and operated by Nippon Express Netherlands and which will lead to the warehouse being the largest in the Port of Rotterdam. With the expansion Nippon Express Netherlands underlines its strong ambition for further growth in this premium logistics location at the Gateway to Europe.”