Tritax Big Box REIT (BBOX) has sold a £199m (€230.4m) portfolio of six UK logistics assets to EQT Real Estate as part of a plan to free up capital for reinvestment into higher-yielding opportunities, including data centre projects and development-led logistics.
BBOX said the sale of big box – or large-format commercial real estate buildings – and urban logistics assets located in the UK towns of Leamington Spa, Peterborough, Didcot and Kettering, form part of the London-listed logistics firm’s strategy to “continually recycle capital into higher returning opportunities, including development-led logistics assets and data centre projects”.
Frankie Whitehead, CFO at BBOX, said: “Consistent with our ambition to self-fund our very attractive near-term opportunities, we have been one of the most proactive recyclers of capital in our sector, delivering sales of nearly £1bn over the past three years.
“We are delighted to complete this £199m sale to EQT Real Estate, the proceeds of which will support investment in higher returning development-led opportunities and further strengthen our balance sheet.”
EQT said it acquired the fully leased 1.6m sqft portfolio across the West Midlands, East Midlands and South East, to further expand its UK logistics footprint and complement its European logistics portfolio.
Jonathan Mackie, managing director at EQT Real Estate, said: “We continue to see attractive long-term opportunities in European logistics, supported by structural trends including the growth of online retail, supply chain optimisation and increasing demand for efficient distribution space close to major population centres.
“This acquisition expands our growing UK logistics footprint and complements our broader European logistics portfolio across established distribution markets.”
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