Tritax EuroBox, which is seeking to make at least €150m worth of disposals before the end of 2024, is selling an asset in Germany to a European real estate investment manager for €64.6m.

The London-listed European logistics real estate company said the sale price of the 43,200sqm asset in Hammersbach is broadly in line with the asset’s valuation as of 31 March this year.

Tritax acquired the asset for €50.6m in June 2019 and undertook an asset management initiative the year after, which resulted in a 23.7% increase in total rental income and improved indexation terms, it said.

Tritax said the proceeds from the disposal will be primarily used to pay down its revolving credit facility, as part of the programme to reduce the leverage in the company, as well as providing scope for investment into existing portfolio opportunities.

The disposal of Hammersbach is also in line with the company’s recently announced sales plan, a strategy expected to make disposals of at least €150m before the end of next year.

Alina Iorgulescu, investment director at Tritax EuroBox, said: “The completion of this sale supports our strategy of crystallising value and recycling proceeds into reducing leverage and funding existing portfolio opportunities.

“The sale to a leading pan-European real estate investor, broadly in line with valuation, highlights the attractiveness of the properties in our portfolio, and evidences the continued investor interest and market stabilisation for high-quality logistics assets. This provides us with confidence to complete further disposals as we continue to recycle capital within our business.”

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