ProLogis European Properties have bought a 467,157 sq ft (43,400 sq m) distribution centre in France for E29m (£19.5m)
The newly developed facility is located in the city of Blois, just south of Orleans. It is let on a nine-year lease to the logistics and distribution division of Redcats, the home shopping retailer. It will be used as the primary distribution hub for Redcats’ mail-order line of home furnishings in France.
PEPR has already begun a 129,168 sq ft (12,000 sq m) extension of the scheme. The extra space created will be occupied by Redcats and the total investment represents a net initial yield of 7.47%.
Robert Watson, chief executive officer of ProLogis European Properties, said: ‘The acquired facility represents a strong addition to our European property portfolio, one that will be accretive to overall yields and will provide asset appreciation over time.’