Tritax Big Box divests 50% of assets from UKCM merger

Tritax Big Box has disposed of £235.7 mln (€274.7 mln) or 50% of the non-strategic assets acquired in the UKCM merger, exceeding December 2023 book value by 2.9% and achieving a 6.1% NIY. 

Another 20% of assets, worth £95.6 mln (€111.4 mln), are under offer, with 14% or £68.4 mln (€79.7 mln) in the final stages of sale. 
These disposals, which include retail, supermarket, hotel, and student accommodation properties, will reduce non-strategic assets to less than 4% of total GAV from 8% at the time of acquisition, significantly ahead of the 24-month target. 
Including £79 mln (€92 mln) of logistics assets sold, total disposals year-to-date reach £220.3 mln (€256.8 mln).
Tritax is redeploying the proceeds into higher-yielding logistics developments (7-8% target yield) and data centers (8-10% target yield), while simultaneously capturing rental growth within the existing UKCM logistics portfolio.
Colin Godfrey, CEO for Tritax Big Box, commented: “We are making excellent progress rotating out of the non-strategic assets acquired through the UKCM transaction. The level of disposals now achieved highlights the overarching quality of the UKCM portfolio. The capital from these disposals, and other ad hoc logistics assets disposals, supports the delivery of our attractive logistics pipeline as well as the exceptional returns through data centre development. In combination with capturing our record rental reversion, these three drivers provide the opportunity to more than double our rental income.”