Tritax EuroBox has exchanged contracts for the disposal of a warehouse asset in Gothenburg, Sweden for SEK 385 mln (€33 mln) to a pan-European real estate investment manager.
The sale price is broadly in line with the valuation as at 30 September 2023 and supports the company’s planned disposal programme, which is primarily aimed at reducing Tritax's leverage.
The 28,900 m2 building was purchased in June 2021 and is in the port of Gothenburg.
The headline sale price is broadly in line with the latest September 2023 external valuation. The deal is conditional on approval in accordance with the Swedish Foreign Direct Investments Act, Tritax said.
The divestment represents the company’s second disposal in Sweden, following the sale of an asset in Malmo at the end of 2023.
Proceeds will be mainly used to reduce net debt, as part of the programme to improve balance sheet metrics, as well as providing scope for investment into existing portfolio opportunities.
In its interim results announcement in May 2023, the company outlined its intention to undertake asset disposals of at least €150 mln over the following 12–18-month period.
The programme was launched with two principal aims: namely, to improve balance sheet metrics, particularly reducing the LTV percentage towards the low 40s, and to fund existing opportunities from within the portfolio.
Alina Iorgulescu, investment director, Tritax EuroBox plc, commented: 'This transaction marks the fourth successful sale since we announced our disposal programme in May 2023 and takes gross proceeds realised over the past 12 months to €173 mln.
'The positive progress made on our disposal programme is testament to our proactive approach while the Gothenburg sale, which was agreed at a price broadly in line with the valuation, underlines the attractiveness of our high-quality portfolio to investors.'
