Tritax EuroBox PLC Sale of asset in Malmö, Sweden for SEK320 million (3095V)
01 Dezember 2023 - 8:00AM
UK Regulatory
TIDMEBOX TIDMBOXE
RNS Number : 3095V
Tritax EuroBox PLC
01 December 2023
Sale of asset in Malmö, Sweden for SEK320 million
Tritax EuroBox plc (the "Company"; tickers: EBOX (Sterling),
BOXE (Euro)) has successfully exchanged contracts for the sale of
its redevelopment site in Malmö, Sweden to a data centre
owner-occupier for a headline price of SEK320 million[1]. The net
sale price is 39% above the valuation as at 31(st) March 2023.
Summary
-- The Company acquired the property with the intention of
redeveloping the site for a logistics scheme of c.60,700 sqm.
-- Since acquisition, market conditions have weakened, with the
expected returns from the development not now as compelling as
selling the site for an alternative use.
-- The sale is 39% above the March 2023 valuation level and 14%
above the acquisition price, net of transaction costs and our
developer-partner fees.
-- Proceeds will be primarily used to pay down debt as part of
the programme to reduce the leverage in the Company.
Background
The 95,000 sqm site was acquired in April 2021 for a
consideration of SEK223 million as a short-term sale and lease back
to Atria Group, with the property becoming vacant in August 2023.
Given the weaker market fundamentals and increased construction
costs, the Company has decided to exit the land at a headline price
above both valuation and acquisition cost. The sale enables the
Company to realise a profitable disposal.
In the Interim Results announcement in May 2023, we outlined our
intention to undertake asset disposals of at least EUR150 million
over the following 12-18-month period. The programme's aim is to
lower the loan to value (LTV) ratio towards our preferred
percentage range in the low 40s and to fund existing opportunities
from within the portfolio. Following the disposal of Hammersbach in
the summer, and the recently announced sale of Bochum, this
transaction demonstrates further progress of this programme and
brings gross sales signed so far to c.EUR139 million.
Company commentary
Alina Iorgulescu, Investment Director, Tritax EuroBox plc,
commented:
"The sale of Malmö is the third asset sold as part of the
disposal programme outlined in our interim results. The sale
reflects our conclusion that potential returns from the necessary
capital investment for the redevelopment of the site were less
attractive than disposing of the site for an alternative use and
realises profits sooner than anticipated. The transaction is
aligned with our strategy of recycling capital to reduce leverage
and provides further evidence of Tritax EuroBox's disciplined
approach to capital allocation. Further disposals have been
identified and we remain confident of achieving our target loan to
value percentage of low 40s over the next 6 to 12 months."
Further information
Tritax EuroBox plc
+44 (0) 20 8051 5070
Phil Redding - CEO
Mehdi Bourassi - CFO
Charles Chalkly - Investor Relations
Kekst CNC (Media enquiries)
Tom Climie / Guy Bates
+44 (0) 7760 160 248 / +44 (0) 7581 056 415
tritax@kekstcnc.com
Notes
Tritax EuroBox plc invests in and manages a well-diversified
portfolio of Continental European logistics real estate. These
assets fulfil crucial roles in logistics and distribution supply
chains, and are located in established logistics markets near major
population centres across core Continental European countries.
Our high-quality portfolio is highly sustainable, offers
predictable and predominantly inflation-linked income and has
opportunities for capital growth through active asset management.
These attributes underpin our ability to generate attractive
returns for Shareholders over the long term.
The Manager, Tritax Management LLP, has assembled a
full-service, pan-European capability for the Company, combining
in-house leadership and strategic expertise with close partnerships
with leading European developers and asset managers.
The Manager comprises a skilled, diverse team of real estate
professionals with expertise across investment, asset management,
development, finance, business analysis, research and
communications. This is supplemented with specialist, on-the-ground
developers, and asset and property managers with strong market
standings in the Continental European logistics sector.
Further information on the Company is available at:
tritaxeurobox.co.uk
The Company's LEI is: 213800HK59N7H979QU33.
[1] c.EUR28 million.
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