REG - Tritax Big Box REIT - £84m Asset Disposal at 4.0% NIY

Tritax Big Box REITAnnouncement

03/08/2023 07:15

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RNS Number : 1368I  Tritax Big Box REIT plc  03 August 2023

 TRITAX BIG BOX SELLS INVESTMENT ASSET FOR £84.3 MILLION AT 4.0% NIY

 

Tritax Big Box REIT plc ("Tritax Big Box" or "the Company") today announces it
has successfully exchanged contracts for the sale of an investment asset let
to Howdens in Raunds for a net consideration of £84.3 million, in line with
its December 2022 and June 2023 valuations, and reflecting a net initial yield
of 4.0%. The purchaser is a leading UK institutional investor in real estate.

 

The investment asset is one of three buildings at Raunds developed for and let
to Howdens Joinery Group Plc. It comprised a 659,000 sq ft logistics building,
which the Company has owned for seven years, with an unexpired lease term at
exchange of approximately 23 years. The investment disposal reduces the
geographical and occupier concentration whilst delivering an attractive return
over the hold period. Howdens continues to occupy the remaining two buildings,
which are owned by Tritax Big Box.

 

The transaction brings the total value of disposals exchanged or completed so
far in 2023 to approximately £235 million.

 

Colin Godfrey, CEO for Tritax Big Box, commented:

"We constantly seek ways to optimise our portfolio to crystalise value and
recycle capital into higher returning opportunities. The disposal, which was
in line with the book value at both December 2022 and June 2023, demonstrates
the attractiveness of our assets and our ability to fully realise their value.
The sale to a leading institutional investor in real estate provides further
evidence of growing stabilisation within the UK investment market and the
strong fundamentals of the sector."

 

ENDS

 

NOTES:

 

Tritax Big Box REIT plc (ticker: BBOX) is the largest listed investor in
high-quality logistics warehouse assets and controls the largest
logistics-focused land platform in the UK. Tritax Big Box is committed to
delivering attractive and sustainable returns for shareholders by investing in
and actively managing existing built investments and land suitable for
logistics development. The Company focuses on well-located, modern logistics
assets, typically let to institutional-grade tenants on long-term leases with
upward-only rent reviews and geographic and tenant diversification throughout
the UK. The Company seeks to exploit the significant opportunity provided by
the imbalance between strong occupational demand and constrained supply of
modern logistics real estate in the UK.

 

The Company is a real estate investment trust to which Part 12 of the UK
Corporation Tax Act 2010 applies, 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 (http://www.tritaxbigbox.co.uk)

 

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