REG - Tritax EuroBox PLC Tritax EuroBox -BOXE - Sale of asset in Malmö, Sweden for SEK320 million

Tritax EuroBoxAnnouncement

01/12/2023 07:00

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RNS Number : 3095V  Tritax EuroBox PLC  01 December 2023

Sale of asset in Malmö, Sweden for SEK320 million

Tritax EuroBox plc (the "Company"; tickers: EBOX (Sterling), BOXE (Euro)) has
successfully exchanged contracts for the sale of its redevelopment site in
Malmö, Sweden to a data centre owner-occupier for a headline price of SEK320
million 1 . The net sale price is 39% above the valuation as at 31(st) March
2023.

Summary

· The Company acquired the property with the intention of redeveloping the
site for a logistics scheme of c.60,700 sqm.

·  Since acquisition, market conditions have weakened, with the expected
returns from the development not now as compelling as selling the site for an
alternative use.

· The sale is 39% above the March 2023 valuation level and 14% above the
acquisition price, net of transaction costs and our developer-partner fees.

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

 

Background

The 95,000 sqm site was acquired in April 2021 for a consideration of SEK223
million as a short-term sale and lease back to Atria Group, with the property
becoming vacant in August 2023. Given the weaker market fundamentals and
increased construction costs, the Company has decided to exit the land at a
headline price above both valuation and acquisition cost. 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 the following
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 disposal of
Hammersbach in the summer, and the recently announced sale of Bochum, this
transaction demonstrates further progress of this programme and brings gross
sales signed so far to c.€139 million.

 

Company commentary

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

"The sale of Malmö is the third asset sold as part of the disposal programme
outlined in our interim results. The sale reflects our conclusion that
potential returns from the necessary capital investment for the redevelopment
of the site were less attractive than disposing of the site for an alternative
use and realises profits sooner than anticipated. The transaction is aligned
with our strategy of recycling capital to reduce leverage and provides further
evidence of Tritax EuroBox's disciplined approach to capital allocation.
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

+44 (0) 7760 160 248 / +44 (0) 7581 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.

 

 1  c.€28 million.

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