Tritax Big Box Completes £235.7M in Non-Strategic Asset Disposals
Why we think this is good
The RNS announcement from Tritax Big Box REIT plc (BBOX) provides a positive update on the company's non-strategic asset disposals. The disposals have been completed at a 2.9% premium to the December 2023 book value, and the proceeds are being redeployed into higher-returning logistics and data centre opportunities. This suggests the company is making good progress in its capital recycling strategy and focusing on its core logistics business, which should be beneficial for shareholders.
Key Points
- 50% of UKCM non-strategic assets sold at a 2.9% premium to December 2023 book value
- Further 20% under offer, of which 14% in solicitors' hands
- Proceeds being redeployed into higher-returning logistics and data centre opportunities
Summary
Tritax Big Box REIT plc (BBOX) has provided an update on the disposal of its non-strategic assets acquired through the UKCM combination. The company has completed £235.7 million of sales, representing 50% of the UKCM non-strategic portfolio, at a 2.9% premium to the December 2023 book value. A further £95.6 million (20%) is under offer, of which £68.4 million (14%) is in solicitors' hands. The disposals have been achieved at a blended 6.1% NIY. The proceeds are being redeployed into accretive growth opportunities, including ongoing investment in developing logistics real estate and new data centre opportunities.