Tritax Big Box REIT has agreed to sell a logistics asset let to Howdens in Raunds, UK, for £84.3 million, reflecting a net initial yield of 4.0%.
The purchaser is a leading UK institutional investor in real estate, the REIT said.
The investment asset is one of three buildings at Raunds developed for and let to Howdens Joinery Group Plc. It comprised a 659,000 sq ft logistics building, which the company has owned for seven years, with an unexpired lease term at exchange of approximately 23 years.
The investment disposal reduces the geographical and occupier concentration whilst delivering an attractive return over the hold period. Howdens continues to occupy the remaining two buildings, which are owned by Tritax Big Box.
The transaction brings the total value of disposals exchanged or completed so far in 2023 to approximately £235 million.
Colin Godfrey, CEO for Tritax Big Box, commented: “We constantly seek ways to optimise our portfolio to crystalise value and recycle capital into higher returning opportunities. The disposal, which was in line with the book value at both December 2022 and June 2023, demonstrates the attractiveness of our assets and our ability to fully realise their value. The sale to a leading institutional investor in real estate provides further evidence of growing stabilisation within the UK investment market and the strong fundamentals of the sector.”
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