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."
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