Tritax EuroBox announces disposal of Gothenburg warehouse

Tritax EuroBox plc has exchanged contracts to sell its Gothenburg warehouse asset for SEK 385 million to a leading pan-European real estate investment manager.

Key Points of the Disposal

1. Deal Price:

– Headline sale price of SEK 385 million.

– Broadly in line with the September 2023 valuation.

– Conditional on approval under the Swedish Foreign Direct Investments Act.

2. Strategic Location:

– 28,900 sqm warehouse in the port of Gothenburg.

– Acquired in June 2021.

– Situated in a strategic logistics hub between Stockholm, Oslo, and Copenhagen.

3. Disposal Program:

– Part of a broader asset disposal strategy to reduce leverage.

– Follows the sale of a Malmo asset in late 2023.

– Proceeds will primarily be used to reduce net debt and fund existing portfolio opportunities.

Overview of the Transaction

Tritax EuroBox plc has successfully exchanged contracts for the disposal of its 28,900 sqm warehouse asset in Gothenburg, Sweden, for SEK 385 million to a leading pan-European real estate investment manager. This sale aligns with the valuation as of September 2023 and supports the company’s ongoing disposal program aimed at improving balance sheet metrics and reducing leverage.

The warehouse, located in the strategic Gothenburg region, was acquired by Tritax EuroBox in June 2021. The region serves as a critical logistics hub, positioned between major cities such as Stockholm, Oslo, and Copenhagen. This transaction marks the company’s second disposal in Sweden, following the sale of an asset in Malmo at the end of 2023.

Company Strategy and Financial Impact

In the Interim Results announcement in May 2023, Tritax EuroBox outlined its plan to undertake asset disposals amounting to at least €150 million over the following 12-18 months. The disposal program’s primary objectives are to improve balance sheet metrics, particularly reducing the loan-to-value (LTV) ratio towards the low 40s, and to create funding opportunities within the existing portfolio.

Alina Iorgulescu, Investment Director at Tritax EuroBox plc, commented, “This transaction marks the fourth successful sale since we announced our disposal program in May 2023 and takes gross proceeds realized over the past 12 months to approximately €173 million. The positive progress made on our disposal program 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.”

Tritax EuroBox’s Portfolio and Management

Tritax EuroBox plc invests in and manages a well-diversified portfolio of Continental European logistics real estate. These assets play crucial roles in logistics and distribution supply chains and are located in established logistics markets near major population centers across core Continental European countries.

The company’s 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 support Tritax EuroBox’s ability to generate attractive returns for shareholders over the long term.

The Manager, Tritax Management LLP, has developed 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.

Tritax EuroBox’s strategic disposal of the Gothenburg warehouse asset demonstrates a proactive approach to managing its portfolio and improving financial metrics. By focusing on high-value assets and reducing leverage, the company strengthens its financial position and enhances its ability to capitalize on growth opportunities within its existing portfolio. This strategy aligns well with the current market conditions, where investors seek stability and predictable returns in high-quality, well-located logistics assets.