Logistics REIT Tritax Eurobox has disposed of a warehouse asset in Hammersbach, Germany for €64.6 mln.
The company said the sale price was broadly in line with the valuation at end-March and reflects a net initial yield of 4.45%.
The 43,200 m2 property, which Tritax purchased in June 2019 for €50.6 mln, was sold to a pan-European real estate investment manager.
The sale of the property follows an asset management initiative undertaken in summer 2022, which resulted in a new lease to tenant B+S GmbH Logistik und Dienstleistungen and 23.7% higher total rental income. The lease provides for an open market rent review at the end of the seven-year fixed term.
Tritax Eurobox said the disposal forms part of its recently announced sales programme, targeting at least €150 mln in total by the end of 2024.
The proceeds will be used to pay down a revolving credit facility and for investment into existing portfolio opportunities.
Alina Iorgulescu, investment director at Tritax EuroBox, commented: ‘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.’
