Tritax EuroBox has sold a logistics property in Bochum, Germany for €46.8m to an unnamed pan-European real estate investment manager.
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%, the company said.
The 37,047 sqm prime logistics property in Bochum was acquired by the company in November 2018 for €37.8 million.
In August 2023, the company 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.
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.”
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