Continental European logistics property investor Tritax EuroBox announced on Friday that it is seeking to raise gross proceeds of £173 mln (€200 mln) via the issue of 168 million ordinary shares at a price of 103p per share.
The price is equal to the September 2020 NAV of €1.19 and represents a 2.4% discount to yesterday's closing price. The company is also seeking approval for a new placing programme of up to an additional 300 million shares.
Proceeds from the raise (along with existing cash and debt) will be used to acquire a near-term investment pipeline of prime big box logistics assets, comprising three German assets with a value of €317 mln, three further assets (two in Italy, one in Germany) with a value of €99 mln and €81 mln of development opportunities within the existing portfolio.
The manager said that it is confident that the proceeds can be deployed into this pipeline within three months of the raise.
It also noted that completion of the issue at the targeted size is expected to provide it with a path to an investment grade credit rating, resulting in a lower cost of borrowings.
The company’s investment portfolio now comprises 13 assets, spread across key logistics locations in six core Continental European countries. As at 30 September 2020, the portfolio was independently valued at €839.3 mln.
