Tritax Big Box Reit Share Discussion Threads

[n0rbie] 14/10/2016 07:11

Hugely oversubscribed as people thought, over £350m demand!

[skinny] 14/10/2016 07:03

The Board of Directors (the "Directors") of Tritax Big Box REIT plc (ticker: BBOX) is pleased to announce the results of the Placing, Open Offer and Offer for Subscription of Ordinary Shares (the "Issue").

Investor demand for the Issue has significantly exceeded the targeted size of £150 million and the maximum size of £250 million. The Board, after careful consideration with the Manager and in consultation with its Joint Financial Advisers, has determined to utilise part of its annual pre-emption disapplication authority to satisfy £100 million of the excess demand on equivalent terms to the Placing (the "Tap Issue").

In taking this decision, the Board has taken into account the strength of the Manager's near term investment pipeline, the Company's stated dividend target for 2016 and its intention to continue to adopt a progressive dividend policy. Accordingly, the total size of the Issue when aggregated with the Tap Issue will be £350 million, which is significantly lower than the total overall demand for the Issue.

A total of 265,151,515 Ordinary Shares will be issued at a price of 132 pence per Ordinary Share (the "Issue Price"), of which 76,364,364 Ordinary Shares will be issued pursuant to the Open Offer, 29,628,265 Ordinary Shares will be issued pursuant to the Offer for Subscription, 83,401,310 Ordinary Shares will be issued under the Placing and 75,757,576 Ordinary Shares will be issued under the Tap Issue.

A scaling back exercise has been undertaken with respect to applications received pursuant to the Placing, the Open Offer and the Offer for Subscription.

The net proceeds of the Issue will be used by the Company to acquire further assets. In this regard, the Company announced on 11 and 12 October 2016 that it had exchanged contracts to acquire three Big Box logistics facilities for an aggregate consideration of £172 million. In addition to these purchases that are each expected to complete on or around 20 October 2016 using the proceeds of the Issue, the Manager is engaged in detailed discussions with the owners of a number of other attractive investment assets, a number of which are off-market, that meet the Company's investment criteria and are available for potential acquisition in the near term.

Commenting on today's announcement, Richard Jewson, Non-Executive Chairman of the Company, said:

"We are delighted with the strong support that this Issue has received from existing shareholders and a wide range of new investors. This fundraising will enable the Company to build upon its strong position and pursue attractive investment opportunities that are likely to be value accretive to our shareholders over the medium term."

Colin Godfrey, Partner of Tritax, commented:

"Since the beginning of 2016, the Company has acquired, or agreed to acquire, nine high quality Big Box assets, taking the total number of investments to 34, and is engaged in discussions with the owners of a number of other attractive assets. The proceeds from this fundraising will allow the Company to strengthen and diversify the portfolio further whilst delivering stable and secure returns for shareholders."

The Issue is conditional, amongst other things, upon the passing of the Resolutions at the General Meeting to be held on 17 October 2016, Admission of the Ordinary Shares occurring no later than 8.00 a.m. on 18 October 2016 (or such later time and/or date as the Company and Jefferies may agree) and the Placing Agreement not being terminated and becoming unconditional in accordance with its terms. If these conditions are not met, the Issue will not proceed and an announcement to that effect will be made via a Regulatory Information Service.

Jefferies International Limited ("Jefferies") and Akur Limited ("Akur") are acting as Joint Financial Advisers and Jefferies is acting as Sponsor, Sole Global Coordinator and Bookrunner in relation to the Issue and the Tap Issue.

[alter ego] 13/10/2016 22:27

Announcement of results of the open offer will be on 14 Oct - meanwhile brokers will show what you applied for, not what you have been allocated.

[melody9999] 13/10/2016 19:23

Nurdin - interested you say sterling weakness is benefit to BBOX.

I can understand that from the perspective of Int brands ....if their currency is US$, then the rent just got cheaper. However for UK brands, purchases just got more expensive so will they stock as much?

Have I missed the point, or on balance is currency not likely to be very important to BBOX one way or the other?

[skinny] 13/10/2016 16:48

According to my account, I have been allocated all of the shares that I asked for - over and above my entitlement.

[skinny] 13/10/2016 16:23

Anley - Ex-dividend is today -

[anley] 13/10/2016 16:21

Remember the ex-dividend date very soon. So the price will be 1.55p less and that will be payable on 27 October so do not expect a surge in the price............as I think the market will want to digest the funding and get to grips as to what the business will now be all about.

This is a dividend paying company not a commercial PLC that can go up and down like a yo-yo.

[skinny] 12/10/2016 21:20

From

"Announcement of the results of the Issue 14 October 2016"

Your 3,500 are I assume you entitlement based on your current holding.

[saltaire111] 12/10/2016 21:05

Mine are in my TD account. I think I applied for 5,000 extra but I've been allocated 3,500. Salty

[nurdin] 12/10/2016 10:58

I didnt think the allocations had been decided yet?

It is more cost effective for internationals to base their logistics and distribution centres in the UK now .Examples of recent customers include Europarts and Whirlpool

[donemyhomework2] 12/10/2016 10:38

I got a full allocation !!! Why do you think that weak sterling will benefit the company?

[nurdin] 12/10/2016 09:38

I have applied too and hoping that I get my allocation.

BBOX is a strong play on the explosive growth in the consumer shift towards online shopping which is not likely to diminish anytime soon.The weakness in sterling is also very positive for the company imo.

[greatgiginthesky] 12/10/2016 09:07

With the results of the previous offer in February the offer was increased from £150m to £200m due to demand and even then £200m "...is significantly lower than the total overall demand for the Issue."
I have applied for two times my existing holding.

[skinny] 12/10/2016 08:38

The Board of Tritax Big Box REIT plc (ticker: BBOX) is pleased to announce that it has exchanged contracts to acquire the distribution warehouse and adjacent lorry parking facility (together the "Facility") at Oliver Road, Thurrock, both let to The Co-operative Group Limited ("Co-Op"). The purchase price for the Facility is £56.5 million (excluding purchaser's costs), reflecting a net initial yield of 5.53% on the asset acquisition. Completion of the purchase is conditional on the successful completion of the fundraising announced by the Company on 28 September 2016 (the "Issue") and is expected to occur on or around 20 October 2016.

This purchase comprises the third asset noted as being under offer and in exclusivity in the announcement of the Issue and takes the total number of assets in the Company's portfolio to 34.

The Facility is one of the Co-Op's six strategic UK distribution hubs and the only one located in the South East. The distribution warehouse, built to a high specification in 2005, has a gross internal area of 322,684 sq ft across 15.25 acres, reflecting a site cover of 48.6%. It has an eaves height of c.15 metres, ancillary offices, secure yards, extensive decked parking and has benefited from significant capital investment from the tenant. The adjacent lorry parking facility, which has development potential and covers a separate c.4.10 acres, was constructed in 2012.

The Facility is strategically located just off J31 of the M25, benefiting from excellent access to the wider motorway network including access to Central and Greater London and the South East as well as the deep sea ports of London Gateway and the Port of Tilbury.

The Facility is being acquired with a weighted average unexpired lease term of approximately 9.4 years on full repairing and insuring terms. The distribution warehouse is subject to five yearly upward only rent reviews to the higher of either a guaranteed fixed uplift of 2% p.a. or open market rent. The lorry parking facility is let on five yearly fixed rent increases of 2.5% p.a. The next review for the warehouse is due in December 2020. The next rent review for the lorry parking facility is due in May 2018.

Colin Godfrey, Partner of Tritax, commented:
"We are pleased to have acquired the Co-Op's South East distribution facility at Thurrock, further diversifying our portfolio tenant mix with an established covenant in a core distribution location. Prime quality Big Box logistics warehouses are in high demand from occupiers requiring close access to the densely populated London conurbations, but there are no units of this size or greater currently available to let around the M25 ring."

[wingrove4] 11/10/2016 22:24

I might have been a holder of these shares since they were floated and I have A lot of faith in them. They seem to be very low risk and I have decided to invest substantially more than I would normally in this forthcoming fundraising. Just hope I haven't made a mistake

[anley] 11/10/2016 16:25

Well there you go.........as I do because you can work out the income (most has to be given in dividends) over the next 3 years and allow for inflation + 3% capital appreciation on the sheds they own.......but you must do your own calculations.

Some will say there could be a disaster and that would be: If all the tennents went bust then the FT100 would not exist and the country would be bust as all the tennents are the ones that mostly make up the FT100 Index.

Another reason why the share issue will be oversubscribed in my view.

[steptoes yard] 11/10/2016 15:27

I love dull
Dull = profit.

[anley] 11/10/2016 11:34

Please do not be concerned as this offer was well subscribed to before all the anniuncements several weeks ago.

The pension funds will strip the 1p+ dividend and have a share worth 132p and sit back to growing dividends as the rental income grows and capital growth as the property values grow.

A dull share...............for many BB investors.

[dnair28] 11/10/2016 10:47

Have to be very confident of a successful fundraising to be entering into conditional contracts like this. Perhaps the board knows it is already oversubscribed?

[skinny] 11/10/2016 08:18

The Board of Tritax Big Box REIT plc (ticker: BBOX) is pleased to announce that it has exchanged contracts with a major UK institution to acquire two modern Big Box logistics facilities at Birch Coppice, Birmingham and at Warth Park, Raunds, Northamptonshire, let to Euro Car Parts Limited ("Euro Car Parts") and Whirlpool UK Appliances Ltd ("Whirlpool"), respectively. The combined purchase price is £115.5 million. Completion of the purchases are conditional (amongst other things) on the successful completion of the fundraising announced by the Company on 28 September 2016 (the "Issue") and are expected to occur on or around 20 October 2016.

These purchases comprise two of the three assets noted as being under offer and in exclusivity in the announcement of the Issue. It is anticipated that contracts will also be exchanged on the third asset in the near term.

Euro Car Parts Main National Distribution Facility at Birch Coppice Business Park, Birmingham

The facility at Birch Coppice Business Park is let to Euro Car Parts, whose ultimate parent company is NASDAQ-listed LKQ Corporation, the largest provider of alternative automobile components in North America and the UK. The purchase price is £80.135 million (excluding purchaser's costs), reflecting a net initial yield of 5.04% on the asset acquisition. The purchase price will be funded by equity proceeds (with senior debt expected to be introduced in the near term).

Completed in January 2016 for Euro Car Parts as its new main National Distribution facility, the property has benefited from significant capital investment from the tenant. Purpose-built to a high specification, it comprises an eaves height of 18 metres, offices, a secure trailer park and extensive parking. The facility has a gross internal floor area of approximately 780,977 sq ft.

Birch Coppice Business Park, Birmingham, located within the Golden Triangle of logistics, is one of the UK's premier rail connected distribution parks, with direct access to the Birmingham Intermodal Freight Terminal, one of the UK's most efficient rail freight terminals. The property also has excellent airport and motorway connectivity with close proximity to the M6, M1, M69 and M6 as well as Birmingham International and East Midlands airports. As an established core logistics location, it has attracted a significant number of major occupiers, including Bunzl, CEVA Logistics, Ocado, PHS, Volkswagen Group and UPS.

The property is being acquired with an unexpired lease term of approximately 19.35 years subject to five yearly upward only rent reviews indexed to the Retail Price Index (capped and collared at 2% p.a. and 4% p.a. compound). The next rent review is due in January 2021. The passing rent is £5.48 per sq ft. which could be considered reversionary against recent market transactions.

Whirlpool Distribution Facility at Warth Park, Raunds, Northamptonshire

The facility at Warth Park is let to Whirlpool whose ultimate parent is Whirlpool Corporation Group, an S&P 500 constituent and the world's leading global manufacturer of home appliances. The purchase price is £35.35 million (excluding purchaser's costs), reflecting a net initial yield of 6.6% on the asset acquisition. The purchase price will be funded by equity proceeds (with senior debt expected to be introduced in the near term).

The facility was completed in 2001 and built to a high specification with a gross internal floor area of 473,263 sq ft and a low site cover of approximately 43%. It has benefited from significant capital investment from the tenant, including a 150,000 sq ft extension in 2006, and comprises an eaves height of 11 metres and substantial secure yards, trailer park and extensive parking.

Warth Park in Raunds, Northamptonshire is strategically located on the A45 corridor close to J13 of the A14, which provides access to the ports of Felixstowe and Harwich and also directly links to the A1(M) dual carriageway and the M1 motorway. The site is also close to the established logistics location of Northampton and Thrapston, with existing major distribution occupiers including Homebase, Morrisons and Primark and the Company's new distribution facility pre-let to Howdens in June 2016 on a new 30 year lease, without break.

The property is being acquired with an unexpired lease term of approximately 4.3 years. There are no further rent reviews. The passing rent is c. £5.20 per sq ft with a capital value cost reflecting £75 per sq ft.

Colin Godfrey, Partner of Tritax, commented:

"We are very pleased to have agreed to acquire these two complementary Big Box distribution facilities. These acquisitions will add two new established covenants to the strong list of tenants in our portfolio, which will then comprise 33 Big Box assets. The Euro Car Parts' new National Distribution facility will provide long term income in one of the most sought after locations within the 'Golden Triangle'. The net initial yield of the Whirlpool facility will be accretive to our portfolio running yield and the short unexpired lease term presents an opportunity for value enhancement in an established logistics location upon re-letting or lease re-gear."

[anley] 10/10/2016 16:59

MCTMCT........institutions who need dividend income and that includes pension funds.....ok?

[toolsmoker] 10/10/2016 14:24

Around 133 prob will trade tomorrow ill be a buyer around there

[toolsmoker] 10/10/2016 10:41

Either way will trade a few p lower this week if you want to buy then friday afternoon is a sage bet i believe

[mctmct] 10/10/2016 10:17

Anley: what does "there are too many safe hand buyers at the placing price." mean?