abrdn European Logistics Income (ASLI) has agreed a 28,500 sq m lease renewal with Biocoop for a highly sustainable warehouse near Avignon, France.
The organic food distributor has signed a 12-year lease, which will generate an annual contracted rent of €2.5m, equating to €86/sq m. The property also generates €165,000 per annum of additional income from rooftop solar panels.
Troels Andersen, lead fund manager for ASLI, said: “This new long-term lease demonstrates the ongoing demand for highly sustainable, tenant critical warehouse space in Europe. The Avignon region has seen limited new development in recent years, which is underpinning significant rental growth and which is expected to have a positive impact on property valuations.
“Furthermore, Biocoop’s environmental credentials, operating a cooperative model seeking to use local produce and limiting transportation emissions, are aligned with our own commitment to improving the already strong portfolio ESG credentials.”
