Tritax Big Box REIT is planning to raise £250m through shares to part fund the acquisition of an 87% stake in db Symmetry, a company which owns one of the UK’s largest land portfolios for logistics development.
The real estate investment trust (REIT) said the acquisition, which would be satisfied through cash and shares, gives db Symmetry an enterprise value of £370m, subject to certain adjustments.
The acquisition is being made through DBS HoldCo, a Tritax subsidiary.
Tritax is offering £202.4m in cash and around £52.6m in the form of shares. DBS HoldCo will also be responsible for the repayment of around £67.7m of bonds owed by db Symmetry.
DBS HoldCo will also issue shares worth around £38.1m to DBS senior management.
Tritax said it is proposing to raise £250m by issuing 192.3m new shares at 130p each to help fund the acquisition and further investments.
The acquisition will see Tritax gaining interests in land or options over land totalling over 2,500 acres, of which 248 acres or 3.8m square feet has planning consent for logistics use and the remaining balance is progressing through the planning process.
The acquisition is expected to complete on 19 February 2019.