Tritax Big Box REIT plc (LON:BBOX) has announced the completion of the sale of six logistics assets to EQT Real Estate for a total cash consideration of £199 million.
The disposals, which were referenced in the Company’s most recent trading update, were sold in line with their respective book values and comprised big box and urban logistics assets located at Leamington Spa, Peterborough, Didcot and Kettering. The assets generate total contracted annual rent of £12 million.
The sale forms part of Big Box’s strategy to continually recycle capital into higher returning opportunities, including development-led logistics assets (target yield on cost of 6-8%) and data centre projects (potential yield on cost of 9-11%).
Frankie Whitehead, CFO for Tritax Big Box, said:
“Consistent with our ambition to self-fund our very attractive near-term opportunities, we have been one of the most proactive recyclers of capital in our sector, delivering sales of nearly £1 billion over the past three years. We are delighted to complete this £199 million sale to EQT Real Estate, the proceeds of which will support investment in higher returning development-led opportunities and further strengthen our balance sheet.”
