Tritax Big Box REIT has agreed to sell three logistics warehouse assets for a net consideration of £125 million, reflecting a blended net initial yield of 4.6%.
The purchaser is a global real estate investor, said the REIT.
The three assets, which have a combined WAULT of 9.2 years and a total area of 1.4 million square feet, comprise:
· Skelmersdale is let to DHL for an unexpired term of 1.5 years. The investment was purchased in August 2014 at a net initial yield (NIY) of 6.5%. Constructed in 2003, the building extends to 470,000 sq ft and has an eaves height of 12.8 metres.
· Knowsley, which was purchased in December 2015 for 6% NIY, is let to Matalan for a further 13.6 years. Originally constructed in 2006 and extended in 2014, the building has an eaves height of 15 metres and a ground floor GIA of 578,000 sq ft.
· Worksop, which is let to Cerealto for a further 12.5 years was acquired by the Company in November 2017 for 6.6% NIY. The 330,000 sq ft building was constructed in 2007.
All three assets are non-core to the investment strategy of the company and have delivered an attractive blended IRR of 12.8% per annum over the combined hold period.
Colin Godfrey, CEO for Tritax Big Box, commented: “We constantly seek ways to optimise our portfolio to crystalise value and redeploy capital into higher returning opportunities. The disposal of three assets for £125 million, in line with their book value, demonstrates the ongoing effective implementation of our strategy and the attractiveness of our assets. The sale to a leading global investor in real estate provides further evidence of the growing stabilisation within the UK investment market. With the UK’s largest logistics focused land portfolio, we have a significant pipeline of higher returning development opportunities we are able to recycle capital into.”