Tritax Big Box Reit Share Discussion Threads

[scubadiverr] 16/11/2020 22:34

Aha. More yield compression. It would be nice to see a 20% increase in our NAV. Cheers

[williamcooper104] 16/11/2020 22:25

The agent went out trying to sell a shed leased to Sainsbury's - they were marketing it at 4.5 percent yield eg roughly 22 times the rent It was aggressively bid up and is now under offer at 3.75 percent or c27x rent - so it's going to trade at 20 percent above the marketing price Just more weight of money/market on fire evidence

[scubadiverr] 16/11/2020 22:06

WC is one of the best posters on advfn imo. Shame I don't fully understand this one

[scruff1] 16/11/2020 21:38

I that the one at Marsh Leys. I cant find anything. I amazed at how you glean these snippets

[williamcooper104] 16/11/2020 17:47

15 year income to Sainsbury's occupied shed in Bedford going under offer at 3.75 percent - was marketed at 4.5 percent

[williamcooper104] 16/11/2020 15:35

No probs - I'm v long BBOX - but never fall in love with a stock and always try and think of what could go wrong The what could go wrong is small at the moment - but few stocks are truly for ever

[scruff1] 13/11/2020 22:14

Good post william. Interesting comments

[williamcooper104] 13/11/2020 21:08

A huge head wind is business rates At moment sheds get taxed very lightly £2-4 psf whereas retail property business rates are anything from £10-£100 psf That's going to get rebalanced and business rates are one of the few ways to tax amazon But doesn't impact on existing leases and the demand is such that while it will lessen rental growth it probably won't kill it -m

[skinny] 13/11/2020 15:45

A bit academic, but I thought it was around -70 degrees Celsius.

[petewy] 13/11/2020 15:32

Aren't the vaccines stored in vacuum boxes which you need for the Pfizer vacs at -80C

[chucko1] 13/11/2020 13:36

Oxford vaccine will require 2 to 8 degrees c. Not sure you really need a warehouse for that - it's not as though the doses are one litre. Well, I hope not - that would be nearly an armful (bigger arms nowadays, I suppose).

[williamcooper104] 13/11/2020 13:31

Not for the Pfizer vaccine - apparently

[eagleblue1] 13/11/2020 13:05

Cheers - suspected so.

[dhoult12] 13/11/2020 12:48

You would assume it's cold store at 5 or 6 degrees for milk etc given tesco, rather than - 70 for a vaccine.

[eagleblue1] 13/11/2020 12:17

Pure speculation on my part and no knowledge of whether this type of facility would be appropriate at all - but could a cold store facility close to a port be a practical place to store a Covid vaccine?

[williamcooper104] 13/11/2020 11:56

Exactly - the big difference between US REIts (total return well in excess of wider market on most timeframes) and U.K. property companies (underperformers on almost any reasonable timeframe) other than sector specialism is cost of capital/premium rating leading to ability to raise equity at a premium to private market valuations That's what made Prologis, SPY (before retail blew up) PSA and American Tower It's why trading at a NAV premium isn't necessarily being overvalued but rather can be huge asset that can lead to spectacular growth

[igoe104] 13/11/2020 11:12

Nice divi has just arrived in my account, I love these quarterly Dividends.

[dhoult12] 13/11/2020 09:58

Lease expires in January at the end of a 25 year one to Tesco. Would assume hope they have done their DD and already have an uplift lined up.

[skinny] 13/11/2020 09:35

Less than additional 1% and at /near the all time high.

[scruff1] 13/11/2020 08:18

12m new shares !?

[williamcooper104] 13/11/2020 07:31

Thanks for posting What's not to like there

[skinny] 13/11/2020 07:01

.




Tritax Big Box REIT plc (Tritax Big Box or the Company) today announces it has acquired a prime temperature controlled distribution unit in the core South Coast location within the Nursling Industrial Estate in Southampton, for GBP44.2 million, reflecting a net initial yield of 5.24%, in an off market transaction with a UK real estate fund.

An attractive asset in a prime location

The acquisition secures an attractive asset in a prime logistics location, providing critical cold-store capabilities close to a key UK port.

-- 325,000 sq ft building with extensive cold-store capabilities on a 20 acre site
-- Well configured cross-docked building with 10 metre eaves and 53 dock levellers, together with extensive parking and yard area

-- Nursling Industrial Estate is the pre-eminent location for logistics on the South Coast, where Southampton represents the primary logistics hub for the region

o Excellent road, port and rail connectivity

o Proximity to a major population centre providing a deep employment market for occupiers

-- Very low vacancy rates in the Southampton area due to high demand from a range of occupiers
Opportunities to increase value and income

The building is let to Tesco on a 25 year lease expiring in January 2021 and, through extensive due diligence, we believe the site provides a range of opportunities to deliver near-term value through asset management, including:

-- Increasing value through agreeing a lease regear/new lease
-- Growing income through capturing current market rental reversion
-- Capturing future rental growth in a structurally undersupplied location
-- Enhancing the configuration of the built area and yard
-- Increasing the asset's sustainability through green initiatives such as solar
Financed through a blend of existing resources and issuance of new shares

The GBP44.2 million consideration will be financed through GBP24.2 million of existing resources and the issue to the seller of 12,166,930 new Ordinary Shares in the Company at a price of 164.38 pence per share.

-- This issue price represents a 6.2% premium to the 30 June 2020 EPRA NAV
-- The new Ordinary Shares are subject to a six-month orderly market agreement in customary form

Colin Godfrey, CEO, Fund Management, commented:

"This is a rare asset acquired off-market in a prime South Coast location next to the M27 motorway and close to the Port of Southampton. Benefitting from a strong existing tenant and a robust underlying occupational market, this building presents us with several attractive asset management opportunities which we expect will drive income and capital value growth. While the investment market for logistics assets continues to strengthen, there remain select attractive acquisition opportunities where significant value can be added through asset management."

Listing of new shares

The new Ordinary Shares to be issued by the Company as part of the consideration represent approximately 0.71% of the Company's existing issued share capital. Applications have been made for all of the new Ordinary Shares to be admitted to the Premium Listing segment of the Official List of the UK Financial Conduct Authority (the "FCA") and to trading on the London Stock Exchange's Main Market for listed securities ("Admission"). The new Ordinary Shares will rank pari passu with the Company's existing Ordinary Shares, and Admission is expected to occur at 8.00am on 16 November 2020.

Total voting rights

Immediately following Admission, the Company will have 1,719,141,878 Ordinary Shares of 1 pence each in issue and therefore the total voting rights in the Company will be 1,719,141,878. This figure may be used by Shareholders as the denominator for the calculations by which they may determine whether or not they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules. The Company does not hold any shares in Treasury.




"The GBP44.2 million consideration will be financed through GBP24.2 million of existing resources and the issue to the seller of 12,166,930 new Ordinary Shares in the Company at a price of 164.38 pence per share"