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Sale of three assets for £77 million: Actively managing our portfolio to deliver value for shareholders

Tritax Big Box REIT plc today announces exchange on the sale of three assets to two separate purchasers for a total consideration of £77 million.

22 Sep 2020

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.

The assets sold were:

  1. Wolseley, Baker Business Park, Ripon
  2. DHL, Langley Mill, Nottingham
  3. Whirlpool, Warth Park, Raunds

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."


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Tritax Big Box REIT Plc BBOX Phase 2 Disposals FINAL DRAFT 22.09.20
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