1 August 2022

LEI: 213800I9IYIKKNRT3G50

abrdn European Logistics Income plc

ASLI  furthers exposure to high growth logistics sector with French acquisitions

abrdn European Logistics Income plc (the "Company" or "ASLI") has completed on the previously announced acquisition of two logistics properties, in Bordeaux and Niort, France. The aggregate purchase price of circa €23 million reflects a net initial yield of 4.0%.

Both properties are leased to Dachser France, an international provider of transport and logistics solutions, on leases which provide annual indexation, whilst they also offer medium term asset management opportunities due to low site coverage.

Built in 2005, the Bordeaux urban logistics asset totals 6,504 sqm and sits on a total plot size of c. 29,000 sqm, (22% site cover). It is located 8 km from the centre of Bordeaux, one of France's most populated cities, alongside the A630 ring road, offering fast access to the area's major arterial routes, including the A10 & N10 to Paris, the A89 to Lyons and the A63 to the Spanish border. A WAULT of 9.5 years, and annual ILAT indexation, provides attractive long term income.

Built in 2014, the Niort property totals 3,939 sqm, on 44,000 sqm of land (9% site cover). Located 10 kilometres from the centre of Niort, which has a population of 177,000, it benefits from its proximity to the A10 motorway connecting to Paris and Bordeaux. The lease is also subject to annual indexation.

The Company expects to complete on the purchase of a third freehold building in France in Q3. A further update will be provided in due course.

The Company also announces that it has secured a debt facility against Phases 1 to 3 of its Spanish Madrid portfolio. A three year term has been agreed with ING Bank at an all-in interest rate of 2.57%. The new facility provides additional flexibility around the Company's debt strategy, and results in an LTV of 30% (using the 31 March 2022 portfolio valuation).

Evert Castelein, Fund Manager for ASLI, commented: "These are tenant critical, well-located assets close to major metropolitan areas in France, one of our high conviction geographies. Both offer excellent road connectivity to Paris and across the country, whilst adding another strong financial covenant.

"Notwithstanding the benefit of indexation, these warehouses also offer attractive longer term asset management potential given the large plot sizes and low site cover. The portfolio now totals 26 properties, with our brand new Madrid Phase Four Amazon hub completed earlier this month and fully income producing, adding further diversification to our portfolio."

The Company expects to announce its Q2 unaudited net asset value in August 2022.

For further information please contact:

abrdn                                                                                    +44 (0) 20 7463 6000

Luke Mason

Gary Jones

Investec Bank plc                                                             +44 (0) 20 7597 4000

Denis Flanagan

David Yovichic

FTI Consulting                                                                   +44 (0) 20 3727 1000

Dido Laurimore

Richard Gotla

James McEwan