Investors keen for warehouses as Tritax £250m placing oversubscribed
Tritax Big Box REIT said its open offer to raise £250m was oversubscribed as investors piled in to support the company's purchase of an 87% stake in privately owned logistics development firm db Symmetry.
Tritax partner Godfrey Palmer said the acquisition provided Tritax with access to a large portfolio of “attractive and high quality development opportunities over the longer term that we...believe can be delivered at a yield on cost significantly higher than is currently available in the investment market from acquisitions of built and let or pre-let forward funded assets”.
The acquisition was expected to "contribute materially to the company's ability to continue to deliver strong earnings growth and a progressive dividend policy as well as significant valuation gains as these assets move through development to become income producing", the company said.
Tritax in January agreed to buy the stake through a payment of £202.4m in cash, equalling 69.1% of db’s equity value, and £52.6m in shares, equalling 17.9% of the value.
db owns a 2,500 acre land portfolio and has 26 warehouses under construction.