LONDON, UK: Tritax Big Box REIT plc, a listed vehicle dedicated to investing in very large logistics warehouse assets in the UK, has announced that it has sold a warehouse in Raunds, Northamptonshire, to a leading UK institutional investor in real estate for £84.3m.
The warehouse is one of three buildings at Raunds developed for and let to Howdens Joinery Group Plc, a supplier of fitted kitchens, appliances and joinery products.
The warehouse comprises a 659,000 sq ft logistics building, which Tritax Big Box has owned for seven years, with an unexpired lease term at exchange of approximately 23 years. The sale price reflects a net initial yield of 4.0%, in line with the book value at both December 2022 and June 2023.
The disposal reduces the geographical and occupier concentration of Tritax Big Box’s portfolio, while 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 by Tritax Big Box to approximately £235m.
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.”