TIDMBBOX
RNS Number : 1990F
Tritax Big Box REIT plc
13 November 2020
13 November 2020
ACQUISITION OF PRIME SOUTH COAST TEMPERATURE CONTROLLED
DISTRIBUTION UNIT
Multiple asset management opportunities to increase value and
income
Tritax Big Box REIT plc (Tritax Big Box or the Company) today
announces it has acquired a prime temperature controlled
distribution unit in the core South Coast location within the
Nursling Industrial Estate in Southampton, for GBP44.2 million,
reflecting a net initial yield of 5.24%, in an off market
transaction with a UK real estate fund.
An attractive asset in a prime location
The acquisition secures an attractive asset in a prime logistics
location, providing critical cold-store capabilities close to a key
UK port.
-- 325,000 sq ft building with extensive cold-store capabilities on a 20 acre site
-- Well configured cross-docked building with 10 metre eaves and
53 dock levellers, together with extensive parking and yard
area
-- Nursling Industrial Estate is the pre-eminent location for
logistics on the South Coast, where Southampton represents the
primary logistics hub for the region
o Excellent road, port and rail connectivity
o Proximity to a major population centre providing a deep
employment market for occupiers
-- Very low vacancy rates in the Southampton area due to high demand from a range of occupiers
Opportunities to increase value and income
The building is let to Tesco on a 25 year lease expiring in
January 2021 and, through extensive due diligence, we believe the
site provides a range of opportunities to deliver near-term value
through asset management, including:
-- Increasing value through agreeing a lease regear/new lease
-- Growing income through capturing current market rental reversion
-- Capturing future rental growth in a structurally undersupplied location
-- Enhancing the configuration of the built area and yard
-- Increasing the asset's sustainability through green initiatives such as solar
Financed through a blend of existing resources and issuance of
new shares
The GBP44.2 million consideration will be financed through
GBP24.2 million of existing resources and the issue to the seller
of 12,166,930 new Ordinary Shares in the Company at a price of
164.38 pence per share.
-- This issue price represents a 6.2% premium to the 30 June 2020 EPRA NAV
-- The new Ordinary Shares are subject to a six-month orderly
market agreement in customary form
Colin Godfrey, CEO, Fund Management, commented:
"This is a rare asset acquired off-market in a prime South Coast
location next to the M27 motorway and close to the Port of
Southampton. Benefitting from a strong existing tenant and a robust
underlying occupational market, this building presents us with
several attractive asset management opportunities which we expect
will drive income and capital value growth. While the investment
market for logistics assets continues to strengthen, there remain
select attractive acquisition opportunities where significant value
can be added through asset management."
Listing of new shares
The new Ordinary Shares to be issued by the Company as part of
the consideration represent approximately 0.71% of the Company's
existing issued share capital. Applications have been made for all
of the new Ordinary Shares to be admitted to the Premium Listing
segment of the Official List of the UK Financial Conduct Authority
(the "FCA") and to trading on the London Stock Exchange's Main
Market for listed securities ("Admission"). The new Ordinary Shares
will rank pari passu with the Company's existing Ordinary Shares,
and Admission is expected to occur at 8.00am on 16 November
2020.
Total voting rights
Immediately following Admission, the Company will have
1,719,141,878 Ordinary Shares of 1 pence each in issue and
therefore the total voting rights in the Company will be
1,719,141,878. This figure may be used by Shareholders as the
denominator for the calculations by which they may determine
whether or not they are required to notify their interest in, or a
change to their interest in, the share capital of the Company under
the FCA's Disclosure and Transparency Rules. The Company does not
hold any shares in Treasury.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Tritax Group Tel: +44 (0) 20 8051 5057
Colin Godfrey (CEO, Fund Management)
Frankie Whitehead (Finance Director)
Ian Brown / Jo Blackshaw (Investor
Relations)
Maitland/AMO (Media enquiries) Tel: +44 (0) 20 7379 5151
James Benjamin tritax-maitland@maitland.co.uk
The Company's LEI is: 213800L6X88MIYPVR714
NOTES:
Tritax Big Box REIT plc (ticker: BBOX) is the only listed
vehicle dedicated to investing in very large logistics warehouse
assets (Big Boxes) in the UK and is committed to delivering
attractive and sustainable returns for Shareholders. Investing in
and actively managing existing built investments, land suitable for
Big Box development and developments predominantly delivered
through pre-let forward funded basis, the Company focuses on large,
well-located, modern Big Box logistics assets, let to
institutional-grade tenants on long-term leases (typically at least
12 years in length) with upward-only rent reviews and 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 and limited supply
of Big Boxes.
The Company is a real estate investment trust to which Part 12
of the UK Corporation Tax Act 2010 applies (REIT), 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
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END
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