(Alliance News) - abrdn European Logistics Income PLC on Friday said it has completed the sale of its Leon warehouse in northern Spain to SCPI Iroko Zen for around EUR18.5 million.

abrdn European Logistics is a investment fund focusing on European logistics real estate, while the warehouse is located in the Villadangos industrial area outside the city of Leon and offers 32,645 square metres of space. It is currently leased to retailer Decathlon with a weighted average remaining lease term of six years.

abrdn European Logistics said the disposal price reflected a 3% premium to its valuation on December 31. It acquired the asset in 2018 for EUR15.3 million, meaning the sale represents a 20% gross profit.

The transaction reduces the company's loan-to-value ratio to 33%, based on December 31 values, improving its cash position, abrdn European Logistics said. Representing the company's first disposal, it also said the transaction increased the portfolio's urban logistics weighting.

abrdn European Logistics said an adjustment to the fixed term debt arrangement over the asset reduces its all-in interest rate to 1.97%.

"Having performed well since acquisition, this is the right time to crystallise our investment by disposing of one of our more mature assets, said Troels Anderson, lead fund manager for abrdn European Logistics. "This sale, which was achieved ahead of the most recent valuation, underlines the resilience of the continental European warehouse sector and continues our portfolio pivot towards more urban assets with strong sustainability credentials.

"Spain remains one of our high conviction markets, with our Spanish assets now wholly concentrated around the sought-after urban locations of Madrid and Barcelona."

Shares in abrdn European Logistics were up 1.6% to 71.15 pence each in London on Friday late morning.

By Greg Rosenvinge, Alliance News reporter

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