Logistics real estate group Tritax Big Box REIT has sold an investment property in Raunds, UK, for £84.3 mln (€97.6 mln) to an unnamed UK institutional real estate investor.
The sale price reflects a net initial yield of 4%.
The asset is one of three buildings developed for and let to kitchen and joinery products company Howdens Joinery Group.
The 61,223 m2 property has been owned by Tritax Big Box REIT for seven years, with an unexpired lease term at exchange of around 23 years.
Howdens continues to occupy the remaining two buildings, which are owned by Tritax Big Box.
The transaction brings the total value of disposals exchanged or completed by Tritax Big Box REIT so far in 2023 to around £235 mln (€273 mln).
Colin Godfrey, CEO for Tritax Big Box, commented: ‘We constantly seek ways to optimize our portfolio to crystallize value and recycle capital into higher returning opportunities. The disposal, which was in line with the book value at both December 2022 and June 2023, demonstrates the attractiveness of our assets and our ability to fully realize their value. The sale to a leading institutional investor in real estate provides further evidence of growing stabilization within the UK investment market and the strong fundamentals of the sector.’
Separately, Tritax Big Box REIT said its H1 profit plunged to £100.7 mln (€116.9 mln), compared with £458.7 mln (€532.7 mln) a year ago. However, rental income was £109.3 mln (€126.9 mln), up from £101.5 mln (€117.9 mln) a year ago.
