Europa Capital, the pan-European real estate investment manager, announces it has agreed a lease extension with XPO Logistics at its c. 51,100 sq m distribution facility in Oss in the Netherlands, on behalf of its new open-ended vehicle, the Europa Diversified Income Fund (“EDIF” or the “Fund”). In the Netherlands, Europa Capital is assisted by local representatives, ARC Real Estate Partners.
As part of the agreement the building will be upgraded to improve its BREEAM rating, in line with XPO Logistics’ requirements, as well as the Fund’s aim to provide long-term outperformance of market benchmarks, for which ESG considerations are a key performance metric.
EDIF, which held its first close of €350 million in November, is designed for an international investor audience and is focused on creating stable and diversified income through investing in logistics, residential and offices. The Fund aims to capitalise on the structural changes of innovation and urbanisation, targeting strong economies in Western Europe, with a focus on France, Germany, the Netherlands and Denmark.
The initial seed portfolio comprises a mix of logistics, residential and office investments. The portfolio, which has outperformed its market indices to date, is 99% occupied and has recorded 99% rent collection in 2020, demonstrating its resilience during the COVID-19 pandemic. With accretive leverage, the Fund has capital remaining to deploy into further acquisitions to diversify the portfolio.
Andy Watson, Partner & Fund Manager at Europa Capital, commented: “This major lease renewal is EDIF in a nutshell – improving the quality of income for our investor clients and improving the built environment for our tenants and their customers.”