Picture: ISTOCK
Picture: ISTOCK

JSE AltX and Mauritius-listed New Frontier Properties has announced the acquisition of Unit 1 in Stadium Business Park in Dublin, Ireland for €8.65m, representing a net initial yield of 8.23%.

The group is shifting its focus from retail to including logistics assets.

New Frontier CEO Mike Riley plans to acquire more logistics assets before the end of 2017.

"This purchase in Dublin is in line with our investment strategy to acquire European logistics and warehouse properties so as to benefit from the increase in e-retailing activity across Europe. This modern warehouse facility is located in a strategic logistics position in northwest Dublin near the International Airport and Dublin Port Tunnel."

The 7,271m² Dublin property is let to Viking Direct (Ireland), a global company forming part of Office Depot, which is one of the largest suppliers of office stationery in the world, on a 20-year, full repairing and insuring lease from August 24 2007 at a rent of €743,518 per annum.

European real estate adviser Waypoint Asset Management helped acquire the property.

Riley said he wanted to achieve a main board listing on the JSE for New Frontier within eighteen months’ time.

"We are focusing on buying logistics assets worth €25m (R412m) or below. We will buy in European countries which support large markets, like Poland, Slovakia, Austria and the Benelux group (Belgium, Netherlands, Luxembourg).

"We want to guarantee a strong income stream for our South African investors who are seeking foreign currency returns to hedge against the rand," said Riley.

andersona@businesslive.co.za

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