(Alliance News) - Tritax EuroBox PLC on Thursday sold a multi-unit warehouse in Bochum, Germany for EUR46.8 million to an unnamed "leading pan-European" real estate investment manager.
The investor in Continental European logistics real estate assets said the sale price of the 37,0467 square metre building was marginally below the valuation at March 31.
The asset was originally bought in November 2018 for EUR37.8 million, it said.
Tritax EuroBox said the proceeds will be primarily used to pay down the revolving credit facility as part of the programme to reduce the leverage in the company.
It said this was part of its plan, outlined with its interim results in May, to dispose of assets of at least EUR150 million value over a 12 to 18 month period.
Following the sale of Hammersbach in the summer, Tritax EuroBox said this disposal demonstrates further progress of this programme and brings gross sales signed so far to around EUR111 million.
"The sale of Bochum is the second asset sold from our German portfolio following the completion of the asset management plan. The transaction continues the progress of the disposal programme outlined in our interim results and is aligned with our strategy of recycling capital to reduce leverage and fund higher-returning portfolio opportunities," said Investment Director Alina Iorgulescu.
"The sale to a leading pan-European real estate investor, at a level close to valuation, highlights the liquidity of the properties in our portfolio, and evidences the continued investor interest in high-quality logistics assets. Further disposals have been identified and we remain confident of achieving our target loan to value percentage of low 40s over the next six to 12 months."
Shares in Tritax EuroBox were down 0.1% to 55.23 pence each in London on Thursday afternoon.
On Tuesday, Tritax EuroBox said it has leased its two-unit asset in Settimo Torinese, Italy.
It said the six-year letting is for the second unit at its 28,287 square kilometre two-unit development in Settimo Torinese, which is located approximately 14 kilometres outside of Turin.
The deal was signed with the same unnamed Italian logistics provider which signed a lease for the other unit in August 2023.
The lease includes a further six-year extension option and includes annually reviewed inflation-linked uplifts.
By Greg Rosenvinge, Alliance News senior reporter
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Tritax Eurobox (EBOX)