Geneva, the 16th June 2021
AB Alternative SICAV-SIF, European Real Estate Sub-Fund is expanding its portfolio and has just completed its sixth acquisition in the Netherlands, with the purchase of a brand new logistics building in Tiel. The asset is ideally located in an expanding logistics zone and offers excellent rail and road connections, with its own access to the roadway A15. Tiel is approx. 80 km southeast of Amsterdam and 70 km east of Rotterdam.
Tiel is one of the oldest towns in the Netherlands, and the largest town in the Betuwe area, it is located on Europe’s busiest commercial transportation river, the Waal. This side river of the Rijn, offers the city many trade and transport possibilities, and the city is attracting more and more businesses as part of its economic expansion.
The property is fully let to Axalta Coatings System Benelux B.V. (“Axalta”), part of Axalta Coating System Ltd., a US global industrial company specializing in coatings in a wide variety of industrial applications, materials and sectors, such as for example automotive paints. It has c. $4.5bn turnover, operations in 130 countries, c. 13k employees worldwide and is listed on the New-York Stock Exchange. Axalta uses the Dutch location as a R&D and training centre, it also distributes its products throughout the Netherlands.
The property consists of 7’140 LFA sqm divided in 1,920 sqm office space, 1,252 sqm training centre and 3,968 sqm of logistic space. We have acquired the asset with a very long weighted average lease term (“WALT”) of 15 years, ending on January 31st, 2036, allowing for full comfort and time to build a solid relationship with the tenant and exploring opportunities to make the property more sustainable and ESG compliant (BREEAM certification, solar panels, etc.).
The deal was originated and advised by Savills Investment Management in the Netherlands. On the legal side, Allen&Overy, Volcrick & Associates, HVG Law LLP advised the fund for this transaction. Savills Investment Management will be responsible for the asset management of the property, as for the other assets in the Dutch portfolio.