Sale of asset in Bochum, Germany for €46.8 million
Sale of asset in Bochum, Germany for €46.8 million
Tritax EuroBox plc (the "Company"; tickers: EBOX (Sterling), BOXE (Euro)) has successfully exchanged contracts for the sale of its multi-unit warehouse in Bochum, Germany for a price of €46.8 million to a leading pan-European real estate investment manager. The sale price is marginally below the valuation as at 31st March 2023.
Summary
· 37,047 sqm building, purchased in November 2018 for consideration of €37.8 million.
· A recently signed new lease in unit 3 was agreed 35% above the unit's current passing rent.
· The headline sale price of €46.8 million is 3% below the external valuation as at 31st March 2023, reflecting a net initial yield of 4.88%.
· Proceeds will be primarily used to pay down the Revolving Credit Facility as part of the programme to reduce the leverage in the Company.
Background
The 37,047 sqm prime logistics property in Bochum, Germany was acquired by the Company in November 2018. In August 2023, we announced the agreement of a new seven-year lease with LUCHS Gmbh at a level 35% above the current passing rent. The business plan for the asset has been completed, including a 23% increase in overall rent since acquisition. The sale enables the Company to realise a profitable disposal.
In the Interim Results announcement in May 2023, we outlined our intention to undertake asset disposals of at least €150 million over a 12-18-month period. The programme's aim is to lower the loan to value (LTV) ratio towards our preferred percentage range in the low 40s and to fund existing opportunities from within the portfolio. Following the sale of Hammersbach in the summer, this disposal demonstrates further progress of this programme and brings gross sales signed so far to c.€111 million.
Company commentary
Alina Iorgulescu, Investment Director, Tritax EuroBox plc, commented:
"The sale of Bochum is the second asset sold from our German portfolio following the completion of the asset management plan. The transaction continues the progress of the disposal programme outlined in our interim results and is aligned with our strategy of recycling capital to reduce leverage and fund higher-returning portfolio opportunities. The sale to a leading pan-European real estate investor, at a level close to valuation, highlights the liquidity of the properties in our portfolio, and evidences the continued investor interest in high-quality logistics assets. Further disposals have been identified and we remain confident of achieving our target loan to value percentage of low 40s over the next 6 to 12 months."
Further information
Tritax EuroBox plc
+44 (0) 20 8051 5070
Phil Redding - CEO
Mehdi Bourassi - CFO
Charles Chalkly - Investor Relations
Kekst CNC (Media enquiries)
Tom Climie / Guy Bates
07760 160 248 / 07581 056 415
tritax@kekstcnc.com
Notes
Tritax EuroBox plc invests in and manages a well-diversified portfolio of Continental European logistics real estate. These assets fulfil crucial roles in logistics and distribution supply chains, and are located in established logistics markets near major population centres across core Continental European countries.
Our high-quality portfolio is highly sustainable, offers predictable and predominantly inflation-linked income and has opportunities for capital growth through active asset management. These attributes underpin our ability to generate attractive returns for Shareholders over the long term.
The Manager, Tritax Management LLP, has assembled a full-service, pan-European capability for the Company, combining in-house leadership and strategic expertise with close partnerships with leading European developers and asset managers.
The Manager comprises a skilled, diverse team of real estate professionals with expertise across investment, asset management, development, finance, business analysis, research and communications. This is supplemented with specialist, on-the-ground developers, and 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.
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