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18 June 2015
The Board of Directors of Tritax Big Box REIT plc is pleased to announce that 47,787,607 new ordinary shares will be issued under the Placing at a Placing Price of 113 pence per share raising gross proceeds of £54.0 million. The net proceeds of the Placing will be used to invest further in UK Big Box assets.
The Placing comprises the final tranche of the Company’s share issuance programme under which a total of 311,640,420 ordinary shares have been issued, raising gross proceeds of £339.0 million since November 2014.
The Company confirms that it is in active discussions to reduce its overall cost of borrowings with gearing levels expected to increase in the near term towards the targets set out in the Company’s investment policy.
Commenting on today’s announcement, Richard Jewson, non-executive chairman of the Company, said:
“We have been delighted by the response from existing shareholders and new investors to the Company’s share issuance programme and thank them for their support. In a little over 18 months, Tritax has assembled a unique portfolio of 22 Big Box logistics assets with a valuation of over £1 billion and a strong diversified tenant base, whilst the Company has grown to be a FTSE 250 index constituent with broad secondary market liquidity and a low cost base.”
Colin Godfrey, Partner of Tritax, commented:
“The Company has successfully delivered on all its investment targets to date and is on track to pay an aggregate dividend of 6 pence for 2015. The logistics sector continues to exhibit robust capital and rental growth which is impacting positively on our portfolio. The Company’s investment pipeline is strong with a range of suitable assets at advanced stages of due diligence and negotiation.”
Jefferies International Limited (“Jefferies”) and Akur Limited (“Akur”) are acting as Joint Financial Advisers and Jefferies is acting as Sole Bookrunner in relation to the Placing.
ADMISSION TO THE OFFICIAL LIST
Application has been made for all of the new ordinary shares to be admitted to the premium listing segment of the Official List of the FCA and to be admitted to trading on the London Stock Exchange’s main market for listed securities (“Admission”). It is expected that Admission will become effective, and that dealings in the new ordinary shares will commence, on 22 June 2015.
For further information, please contact:
Newgate Communications (Financial PR)
Tel: 020 7680 6550
Tritax Big Box REIT plc is a real estate investment trust to which Part 12 of the UK Corporation Tax Act 2010 applies (“REIT”). The Company invests in a portfolio of well-located, modern “Big Box” assets, typically greater than 500,000 sq. ft., let to institutional-grade tenants on long-term leases (typically at least 12 years in length) with upward-only rent reviews (giving inflation linked earnings growth), and with geographic and tenant diversification throughout the UK. The Company seeks to exploit the significant opportunity in this sub-sector of the UK logistics market owing to strong tenant demand in high growth areas of the economy and limited stock supply. The Company is the first listed vehicle to give pure exposure to the “Big Box” asset class in the UK.
Further information on Tritax Big Box REIT is available at www.tritaxbigboxreitplc.co.uk