Tritax EuroBox plc has agreed a lease re-gear, a new lease and associated solar PV Power Purchase Agreement (PPA) at Logistics Park Bornem, Belgium, in conjunction with its local asset management partner, Logistics Capital Partners (LCP). The re-gear and new lease are both eight-year, inflation-linked leases and have been signed, together with the PPA, with an existing customer, which is a leading global pharmaceutical and medtech company.
The lease re-gear is for unit B (13,945 sqm) and the new lease is for unit C (14,935 sqm) at the Company's 45,850 sqm three-unit development in Bornem, which is well-located 34km both from the Port of Antwerp and Brussels. The unit B re-gear extends the unexpired lease term to August 2032 from August 2027, with a tenant break option in August 2030. The rent remains at the passing rack rented level. The new lease on unit C is based on the same terms as unit B with the rent subject to an open market review (capped at 20% uplift) 12 months from the commencement of the lease. A surrender premium has also been agreed with the former tenant of unit C. Both leases benefit from 100% inflation indexation, which will be reviewed annually, and include Tritax EuroBox Green Lease clauses. A new PPA for both units consolidates the income produced by the units' solar PV scheme, which have a combined generating capacity of 1.35MWp. This will benefit both the Company and the customer by improving the current solar-related income on the Logistics Park for the Company as well as creating cost savings for the tenant and a positive environmental impact by reducing CO2 emissions.