Sale of three assets for £77 million
22 September 2020
SALE OF THREE ASSETS FOR £77 MILLION
ACTIVELY MANAGING PORTFOLIO TO DELIVER VALUE FOR SHAREHOLDERS
Tritax Big Box REIT plc (Tritax Big Box or the Company) today announces exchange on the sale of three assets to two separate purchasers for a total consideration of £77 million.
Through our ongoing evaluation of the portfolio, we consider these assets to have reached their full value under our ownership following the completion of asset management initiatives which delivered rental growth and a lease extension. Based upon factors such as their size and relative lease lengths, and detailed quantitative analysis on expected future returns, these assets are less well aligned with our long-term strategic and portfolio objectives.
Size (sq ft)
Lease Length (years)
Wolseley, Baker Business Park, Ripon
2 October 2020
DHL, Langley Mill, Nottingham
1 December 2020
Whirlpool, Warth Park, Raunds
1 December 2020
The sale of these three assets delivers attractive returns to our shareholders, including:
· Delivering IRRs above our 9% per annum target.
· Are sold at or above their current book value.
· The consideration of £77 million represents a blended NIY of 5.6%, compared to our purchase cost of £65.1 million (NIY of 6.6%).
· Following exchange, the Company will benefit from approximately three months of additional rental income totalling £0.8 million due to the delayed completion on the disposal of the Langley Mill and Warth Park assets.
Colin Godfrey, CEO, Fund Management, commented:
"Ongoing portfolio evaluation is an intrinsic part of our strategy to deliver value to our shareholders. We continue to see strong demand for UK logistics real estate supporting attractive prices on assets which no longer align with our strategy and where we believe they have reached their full value potential in our ownership. So far this year we have disposed of £134 million of assets, and we will be redeploying the proceeds into attractive opportunities, including those within our portfolio where we see the potential to secure higher returns for shareholders."
FOR FURTHER INFORMATION, PLEASE CONTACT:
The Company's LEI is: 213800L6X88MIYPVR714
Tritax Big Box REIT plc (ticker: BBOX) is the only listed vehicle dedicated to investing in very large logistics warehouse assets (Big Boxes) in the UK and is committed to delivering attractive and sustainable returns for Shareholders. Investing in and actively managing existing built investments, land suitable for Big Box development and developments predominantly delivered through pre-let forward funded basis, the Company focuses on large, well-located, modern Big Box logistics assets, let to institutional-grade tenants on long-term leases (typically at least 12 years in length) with upward-only rent reviews and geographic and tenant diversification throughout the UK. The Company seeks to exploit the significant opportunity in this sub-sector of the UK logistics market owing to strong tenant demand and limited supply of Big Boxes.
The Company is a real estate investment trust to which Part 12 of the UK Corporation Tax Act 2010 applies (REIT), is listed on the premium segment of the Official List of the UK Financial Conduct Authority and is a constituent of the FTSE 250, FTSE EPRA/NAREIT and MSCI indices.
Further information on Tritax Big Box REIT is available at www.tritaxbigbox.co.uk