Alpha Real Trust buys industrial facility in Hamburg

Alpha Real Trust Limited (ART) has bought an industrial facility in Hamburg leased to a leading international group for €17m (£15.2m) including acquisition costs.

The property is leased to Veolia Umweltservice Nord GmbH, part of the Veolia group, an international industrial specialist in water, waste and energy management with a 24-year unexpired lease term. Under the lease, the tenant is responsible for building maintenance and the passing rent of €0.9m a year has periodic inflation linked adjustments.

ART has secured a €9.5m fixed-rate loan facility with a 10-year term as part of the acquisition funding.

The property is held freehold and occupies a site of 11.8 acres in Billbrook, a well-established and well connected industrial area located approximately 8 kilometres south-east of Hamburg centre.

ART said the acquisition gives it the potential to benefit from a long-term secure and predictable inflation-linked income stream which is forecast to generate stable high single digit income returns and contribute additional diversification to its portfolio.

It also offers the potential for associated capital growth from an industrial location in a major German logistics and infrastructure hub.

At 1500 BST, the shares were up 1.5% to 133p.