REG - Tritax EuroBox PLC Tritax EuroBox -BOXE - Sale of asset in Bochum, Germany for €46.8 million

Tritax EuroBoxAnnouncement

30/11/2023 14:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20231130:nRSd2628Va&default-theme=true

RNS Number : 2628V  Tritax EuroBox PLC  30 November 2023

Sale of asset in Bochum, Germany for €46.8 million

Tritax EuroBox plc (the "Company"; tickers: EBOX (Sterling), BOXE (Euro)) has
successfully exchanged contracts for the sale of its multi-unit warehouse in
Bochum, Germany for a price of €46.8 million to a leading pan-European real
estate investment manager. The sale price is marginally below the valuation as
at 31(st) March 2023.

 

Summary

·      37,047 sqm building, purchased in November 2018 for consideration
of €37.8 million.

·      A recently signed new lease in unit 3 was agreed 35% above the
unit's current passing rent.

·      The headline sale price of €46.8 million is 3% below the
external valuation as at 31(st) March 2023, reflecting a net initial yield of
4.88%.

·      Proceeds will be primarily used to pay down the Revolving Credit
Facility as part of the programme to reduce the leverage in the Company.

 

Background

The 37,047 sqm prime logistics property in Bochum, Germany was acquired by the
Company in November 2018. In August 2023, we announced the agreement of a new
seven-year lease with LUCHS Gmbh at a level 35% above the current passing
rent. The business plan for the asset has been completed, including a 23%
increase in overall rent since acquisition. The sale enables the Company to
realise a profitable disposal.

In the Interim Results announcement in May 2023, we outlined our intention to
undertake asset disposals of at least €150 million over a 12-18-month
period. The programme's aim is to lower the loan to value (LTV) ratio towards
our preferred percentage range in the low 40s and to fund existing
opportunities from within the portfolio. Following the sale of Hammersbach in
the summer, this disposal demonstrates further progress of this programme and
brings gross sales signed so far to c.€111 million.

 

Company commentary

Alina Iorgulescu, Investment Director, Tritax EuroBox plc, commented:

"The sale of Bochum is the second asset sold from our German portfolio
following the completion of the asset management plan. The transaction
continues the progress of the disposal programme outlined in our interim
results and is aligned with our strategy of recycling capital to reduce
leverage and fund higher-returning portfolio opportunities. The sale to a
leading pan-European real estate investor, at a level close to valuation,
highlights the liquidity of the properties in our portfolio, and evidences the
continued investor interest in high-quality logistics assets. Further
disposals have been identified and we remain confident of achieving our target
loan to value percentage of low 40s over the next 6 to 12 months."

Further information

Tritax EuroBox plc

+44 (0) 20 8051 5070

Phil Redding - CEO

Mehdi Bourassi - CFO

Charles Chalkly - Investor Relations

 

Kekst CNC (Media enquiries)

Tom Climie / Guy Bates

07760 160 248 / 07581 056 415
tritax@kekstcnc.com (mailto:tritax@kekstcnc.com)

 

Notes

Tritax EuroBox plc invests in and manages a well-diversified portfolio of
Continental European logistics real estate. These assets fulfil crucial roles
in logistics and distribution supply chains, and are located in established
logistics markets near major population centres across core Continental
European countries.

Our high-quality portfolio is highly sustainable, offers predictable and
predominantly inflation-linked income and has opportunities for capital growth
through active asset management. These attributes underpin our ability to
generate attractive returns for Shareholders over the long term.

The Manager, Tritax Management LLP, has assembled a full-service, pan-European
capability for the Company, combining in-house leadership and strategic
expertise with close partnerships with leading European developers and asset
managers.

The Manager comprises a skilled, diverse team of real estate professionals
with expertise across investment, asset management, development, finance,
business analysis, research and communications. This is supplemented with
specialist, on-the-ground developers, and asset and property managers with
strong market standings in the Continental European logistics sector.

 

Further information on the Company is available at: tritaxeurobox.co.uk
(http://www.tritaxeurobox.co.uk)

The Company's LEI is: 213800HK59N7H979QU33.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCWPGACGUPWGWU