(Alliance News) - Tritax Big Box REIT PLC on Tuesday said it has sold three UK assets to two separate buyers for a total amount of GBP77 million.
The properties sold by the FTSE 250-listed real estate investment trust includes the 221,763 square feet Wolseley, Baker Business Park in Ripon which was acquired in August 2014, the 255,680 square feet DHL, Langley Mill in Nottingham which was purchased in August 2014 , as well as the 473,263 square feet Whirlpool, Warth Park in Raunds which was bought in September 2016.
The disposal of the Ripon asset is expected to complete on October 2 while the other two are expected to complete on December 1.
Tritax said the the sale of the three properties were sold at or above their current book value, adding that the combined sale prices represents a blended net initial yield of 5.6%, compared to the purchase cost of GBP65.1 million. It added that the sale delivers internal return rate above its 9% per annum target.
Following the exchange, the company will benefit from around three months of additional rental income totalling GBP800,000 due to the delayed completion on the disposal of the Langley Mill and Warth Park assets.
"We continue to see strong demand for UK logistics real estate supporting attractive prices on assets which no longer align with our strategy and where we believe they have reached their full value potential in our ownership. So far this year we have disposed of GBP134 million of assets, and we will be redeploying the proceeds into attractive opportunities, including those within our portfolio where we see the potential to secure higher returns for shareholders," said Chief Executive Colin Godfrey.
Shares in Tritax Big Box were trading 0.1% higher at 151.90 pence each on Tuesday morning in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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Tritax Big Box (BBOX)