Tritax Big Box REIT has announced the sale of a warehouse in Raunds, Northamptonshire to an undisclosed buyer described as “a leading UK institutional investor in real estate”, for £84.3 million.
The building is one of three at the site “developed for and let to” Howdens Joinery Group. Tritax Big Box has confirmed that it still owns the other two facilities, where Howdens will remain as the occupants.
Featuring 15m eaves and with an EPC rating of ‘B’, the warehouse was acquired in 2016 for £71.2 million. Sale of the 659,000ft² warehouse reflects a net initial yield (NIY) of 4%.
Colin Godfrey, Chief Executive of Tritax Big Box, said: “We constantly seek ways to optimise our portfolio to crystalise 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 realise their value.
“The sale to a leading institutional investor in real estate provides further evidence of growing stabilisation within the UK investment market and the strong fundamentals of the sector.”
This news comes as Tritax Big Box revealed its financial results for the first half of 2023. This document shows that, following this £84.3 million sale, the company has ‘completed or exchanged on’ asset disposals to the value of £235 million in the first six months of the year.
Additionally, it highlights a 7.5% increase in Tritax Big Box’s operating profit, from £88.8 million at the end of June 2022 to £95.5 million exactly 12 months on.