Tritax Big Box REIT is close to having sold 70% of the non-core assets it acquired in its takeover of UKCM a year ago, recycling the proceeds into higher-returning logistics and data centre deals.
The company has sold 50% of the assets marked for disposal for £235.7m, at a 2.9% premium to December 2023 book value and a blended yield of 6.1%. A further 20% is under offer at £95.6m, of which 14% is in solicitors’ hands.
The REIT said the deals mark “substantial progress” in its disposal programme, which includes a target to complete the UKCM non-strategic disposals within 24 months of the acquisition.
Chief executive Colin Godfrey said: “We are making excellent progress rotating out of the non-strategic assets acquired through the UKCM transaction. The level of disposals now achieved highlights the overarching quality of the UKCM portfolio. We continue to see high levels of interest in the remaining non-strategic assets, of which a further £95.6m is under offer, underpinning our confidence in being able to exit the position within 24 months of acquisition, as planned.”
He added: “The capital from these disposals, and other ad hoc logistics assets disposals, supports the delivery of our attractive logistics pipeline as well as the exceptional returns through data centre development. In combination with capturing our record rental reversion, these three drivers provide the opportunity to more than double our rental income.”
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