LONDON, UK: Tritax EuroBox plc, a UK-based real estate investment trust that focuses on continental European logistics properties, has announced the sale of its warehouse asset in Hammersbach, Germany, for €64.6 million to a leading pan-European real estate investment manager. The sale price is in line with the valuation as at 31 March 2023.
The property, which was acquired by Tritax EuroBox in June 2019 for €50.6 million, is a 43,200 sqm prime logistics building leased to B+S GmbH Logistik und Dienstleistungen, a German logistics and services company. Tritax EuroBox increased the rental income of the property by 23.7% through an asset management initiative in summer 2022.
The sale reflects a net initial yield of 4.45% and is part of Tritax EuroBox’s strategy to reduce its leverage and recycle capital into existing portfolio opportunities1. The proceeds will be mainly used to pay down the revolving credit facility and lower the pro forma loan-to-value ratio to around 43%.
The disposal of Hammersbach is an important step in the recently announced sales programme, which aims to sell at least €150 million worth of assets before the end of 20241. The asset represents about 2% of Tritax EuroBox’s annualised rental income.
Alina Iorgulescu, Investment Director of Tritax EuroBox, said that the sale supports the company’s strategy and demonstrates the attractiveness of its portfolio and the continued investor interest in high-quality logistics assets1. She also expressed confidence in completing further disposals as the company continues to recycle capital within its business.