abrdn European Logistics Income plc

Capital/Financing Update • Mar 6, 2019

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RNS Number : 9974R

Aberdeen Standard Eur Lgstc Inc PLC

06 March 2019

Aberdeen Standard European Logistics Income PLC (LSE: ASLI) (the "Company" or "ASLI")

LEI: 213800I9IYIKKNRT3G50

6 March 2019

Completion of Acquisitions and New Debt Facilities

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."

For further information:

Aberdeen Standard Fund Managers Limited

0207 463 6000

William Hemmings

Gary Jones

Jonathon McManus

Canaccord Genuity Limited

0207 523 8000

Will Barnett

Neil Brierley

Dominic Waters

David Yovichic

Notes to Editors

Aberdeen Standard European Logistics Income PLC is a UK investment trust with a premium listing on the Main Market of the London Stock Exchange. The Company invests in European logistics real estate to achieve its objective of providing its shareholders with a regular and attractive level of income return together with the potential for long term income and capital growth. The Company aims to invest in a portfolio of assets diversified by both geography and tenant throughout Europe, predominantly targeting well-located assets at established distribution hubs and within population centres.

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