Tritax Big Box acquires €1.2b Blackstone logistics portfolio

Tritax Big Box has announced the acquisition of a £1.04 bn (€1.21 bn) logistics portfolio from Blackstone, comprising 32 urban logistics and 5 big box assets.

Logistics - Tritax BB

The portfolio was purchased significantly below replacement cost and is strategically located in key areas across the South East and the Midlands.
The deal, set to close around October 22, involves a combination of cash (£632 mln/€736 mln, funded by a new £650 mln/€757 mln debt facility) and newly issued BBOX shares (up to 233.11 mln, valued at approximately £375 mln/€437 mln). Blackstone will become a roughly 9% shareholder in Tritax Big Box, with its shares issued at a 13.5% premium to the current share price.
Tritax Big Box sees strategic and financial benefits in this acquisition, aligning with its goals of capturing rental reversion, expanding its development pipeline, and delivering strong returns. The portfolio's high-quality, well-located assets offer significant near-term rental growth potential, particularly with shorter-dated urban logistics leases. The acquisition price is also below the replacement cost of these assets, especially in constrained urban locations.
The acquisition will increase Tritax Big Box's urban logistics offering in key micro-locations, leveraging its efficient platform and expertise in asset management to enhance earnings.
The expanded portfolio will increase Tritax Big Box's gross asset value to £7.857 bn (€9.15 bn), with a loan-to-value (LTV) of approximately 35%. The company plans to undertake around £300 mln (€349 mln) in targeted disposals over the next 12-18 months to bring its LTV into the 30-35% range. The acquisition is conditional on securing the £650 mln (€757 mln) debt facility from Santander Corporate & Investment Banking.
Colin Godfrey, BBOX CEO, commented: "Aligned with our strategic objectives, this exceptional portfolio offers strong rental reversion and numerous asset management opportunities. It also significantly broadens our client proposition across key urban logistics markets and reinforces our leading position in mission-critical big boxes; in combination growing our GAV to over £7.9 bn (€9.21 bn). The acquisition also delivers immediate financial benefits, including mid-single-digit EPS accretion and enhanced returns well above our cost of capital."