Tritax Big Box REIT plc has exchanged contracts for the sale of a logistics building in Raunds, Northamptonshire, for £84.3 million.
The purchaser is a leading UK institutional investor in real estate. The price reflects a net initial yield of 4.0%.
The 659,000 square foot unit is one of three buildings at Raunds developed for and let to Howdens Joinery Group Plc. The logistics building has an unexpired lease term at exchange of approximately 23 years.
Tritax Big Box CEO Colin Godfrey says, “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.”
The investment disposal reduces the geographical and occupier concentration whilst also delivering an attractive return over the hold period. Howdens continues to occupy the remaining two buildings, which are owned by Tritax Big Box.
The transaction brings the total value of disposals exchanged or completed so far in 2023 to approximately £235 million.
