Tritax Eurobox to raise £170m in placing to fund acquisition

Real estate investor Tritax Eurobox said on Friday that it was looking to raise £170m via a placing in order to fund new investments.

The proposed placing price of 111.5p per share is a 3% discount to its closing price on 9 September but a premium of approximately 3.7% to its estimated unaudited IFRS net asset value per ordinary share on 30 June, the company said on Friday.

Tritax wants to use net proceeds of the placing, together with existing resources and debt, to secure the acquisition of a near-term investment pipeline of around €520.0m of "prime big box logistics assets" across Continental Europe.

Jefferies and Van Lanschot Kempen will act as joint global co-ordinators and joint bookrunners to the company in connection with the placing.

In a separate announcement, Tritax Eurobox revealed that conditional contracts had been entered into to acquire land for the development of a new high specification and sustainable logistics asset in Oberhausen, a prime location in the Rhine-Ruhr region of Germany, with the company also entering into a forward funding agreement to construct the building.

The acquisition price of €29.9m reflects a net initial yield of 4.3% based on the income from the rental guarantee.

As of 0900 BST, Tritax shares were down 1.39% at 113.40p.