Tritax EuroBox plc (the "Company"; tickers: EBOX (Sterling), BOXE (Euro)) has successfully exchanged contracts for the sale of its warehouse asset in Hammersbach, Germany for a price of €64.6 million to a leading pan-European real estate investment manager. The sale price is broadly in line with the valuation as at 31st March 2023.
Highlights
- 43,200 sqm building, purchased in June 2019 for consideration of €50.6 million
- An asset management initiative undertaken in summer 2022 resulted in a 23.7% increase in total rental income, improved indexation terms, and inclusion of an open market rent review at the end of the 7-year fixed lease term
- Headline sale price of €64.6 million is broadly in line with the latest March 2023 external valuation and reflects a net initial yield of 4.45%
- Proceeds will be primarily used to pay down the Revolving Credit Facility, as part of the program to reduce the leverage in the Company, as well as providing scope for investment into existing portfolio opportunities
Overview
The 43,153 sqm prime logistics property in Hammersbach, Germany was acquired by the Company in June 2019. Following an asset management initiative that resulted in a new lease to B+S GmbH Logistik und Dienstleistungen, the business plan for the asset has been completed. With an unexpired lease term of six years and no other imminent asset management opportunities, the sale allows the Company to realise the value of the asset through a profitable disposal.
The disposal of Hammersbach marks an important step in the recently announced sales programme, with a total disposal target of at least €150 million before the end of 2024. The asset represents circa 2% of the Company's annualised rental income and reduces the pro forma LTV to c.43%[1].
Company commentary
Alina Iorgulescu, Investment Director, Tritax EuroBox plc, commented:
"The completion of this sale supports our strategy of crystallising value and recycling proceeds into reducing leverage and funding existing portfolio opportunities. The sale to a leading pan-European real estate investor, broadly in line with valuation, highlights the attractiveness of the properties in our portfolio, and evidences the continued investor interest and market stabilisation for high-quality logistics assets. This provides us with confidence to complete further disposals as we continue to recycle capital within our business."
Further information
Kekst CNC (Media enquiries)
Neil Maitland / Guy Bates
+44 (0) 7971 578 507 / +44 (0) 7581 056 415
tritax@kekstcnc.com
Notes
Tritax EuroBox plc invests in and manages a well-diversified portfolio of well-located Continental European logistics real estate assets that are expected to deliver an attractive capital return and secure income to shareholders. These assets fulfil key roles in the logistics and distribution supply-chain focused on the most established logistics markets and on the major population centres across core Continental European countries.
Occupier demand for Continental European logistics assets is undergoing major long-term structural change principally driven by the growth of e-commerce. This is evidenced by technological advancements, increased automation, and supply-chain optimisation.
The Company's Manager, Tritax Management LLP, has assembled a full-service European logistics asset management capability including specialist "on the ground" 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
The Company's LEI is: 213800HK59N7H979QU33.
