Tritax Big Box sells six assets for £327m

Tritax Big Box said in an update on Tuesday that it has successfully sold six assets, achieving a total consideration of £327m.

The FTSE 250 real estate investment trust said the sales were conducted at or above the most recent valuations.

It said the disposed assets were located in Corby, Raunds, Knowsley, Skelmersdale, Worksop, and Littlebrook and were occupied by companies including Eddie Stobart, Howdens, Matalan, DHL, and Cerealto.

The total square footage of the assets ranged from 84,000 to 848,000 square feet, while the weighted average unexpired lease terms varied from 1.4 years to 22.9 years.

Tritax Big Box said its strategic approach to the disposals was consistent with its long-term vision.

The company said it planned to reinvest the proceeds into opportunities that offered higher returns.

Primarily, they would be channelled into the company’s development pipeline, where Tritax anticipated achieving yields ranging from 6% to 8% on the investment cost.

Additionally, the firm said it was open to opportunistic investment acquisitions, ensuring a balanced and growth-oriented capital allocation strategy for the 2023 financial year and beyond.

“Our disposals provide further evidence of the delivery of our strategy as we continue to optimise our portfolio,” said chief executive officer Colin Godfrey.

“We are realising the value of assets that have delivered attractive returns in our ownership and effectively recycling capital into higher returning development and acquisition opportunities.

“The overall high-quality of our portfolio is reflected in our ability to continue to sell assets at or above their book value despite ongoing reduced levels of investment market activity.”

At 0815 GMT, shares in Tritax Big Box were down 0.13% at 154.2p.

Reporting by Josh White for Sharecast.com.