Tritax Big Box Reit Share Discussion Threads

[skinny] 08/7/2014 15:19

Take a deep breath!





The Board of Directors (the "Board") of Tritax Big Box REIT plc (ticker: BBOX) announces the publication of a prospectus today (the "Prospectus") in relation to: an issue of up to 145,631,068 new Ordinary Shares through a Placing, Open Offer and Offer for Subscription at a price of £1.03 per Ordinary Share (the "Issue Price") to raise up to £150 million (the "Issue"); the proposed future issue of up to 350 million new Ordinary Shares through the Share Issuance Programme; and the proposed admission of the Company's issued and to be issued ordinary share capital to the premium listing segment of the Official List of the Financial Conduct Authority and to trading on the main market for listed securities of the London Stock Exchange (together "Admission"). The new Ordinary Shares will also initially be admitted to the Official List of the Channel Islands Securities Exchange Authority Limited ("CISEA").

The Company has successfully invested the proceeds of its initial £200 million fundraise and its subsequent £20.8 million placing in a portfolio of six Big Box assets let to Institutional-Grade Tenants, in line with the Company's investment policy. The Board and the Manager believe that there is a strong pipeline of suitable new investment opportunities and the Company is in detailed discussions in relation to the potential acquisition of a number of additional Big Box assets.

The Board believes that the Issue and the Share Issuance Programme have the following principal benefits for Shareholders:

· the net proceeds of the Issue and Share Issuance Programme will be used to invest further in UK Big Box assets, diversifying the Company's Portfolio, providing strategic flexibility and capitalising on the Company's leading position in the UK Big Box market;

· the Issue and the Share Issuance Programme will allow the Company to tailor future equity issuance to its immediate pipeline, providing flexibility and minimising cash drag;

· the Open Offer provides Qualifying Shareholders with the ability to acquire Ordinary Shares at a discount to the mid-market price per Ordinary Share as at 7 July 2014 and without incurring stamp duty or dealing costs;

· the Issue is expected to be Net Asset Value accretive for Existing Shareholders (net of fees and expenses associated with the Issue);

· an increase in the size of the Company should enhance the marketability of the Company and result in a broader investor base over the longer term; and

· an increase in the size of the Company will spread its fixed operating expenses over a larger issued share capital.

The Directors are confident that sufficient suitable assets will be identified, assessed and acquired, to substantially invest or commit the net proceeds from the Issue within a three to four month period following Admission.

Issue Highlights

· Placing, Open Offer and Offer for Subscription at a price of 103 pence per Ordinary Share to raise Gross Proceeds of up to £150 million (up to £147 million net of fees and expenses associated with the Issue being 2 per cent. of Gross Proceeds).

· Up to 97,768,888 Ordinary Shares will be made available to Qualifying Shareholders at the Issue Price pro rata to their holdings of Existing Shares, on the terms and subject to the conditions of the Open Offer, on the basis of 4 new Ordinary Shares for every 9 Existing Shares held and registered in the name of each Qualifying Shareholder on the Record Date.

· Qualifying Shareholders who take up all of their Open Offer Entitlements may also apply under the Excess Application Facility for additional Ordinary Shares in excess of their Open Offer Entitlement. Applications under the Excess Application Facility will be allocated, in the event of over-subscription, pro rata to Qualifying Shareholders' applications under the Excess Application Facility.

· In addition, a minimum of 47,862,180 Ordinary Shares have been reserved for the Offer for Subscription and the Placing. This will grow to the extent that Qualifying Shareholders do not take up their entitlements under the Open Offer (or apply through the Excess Application Facility).

· The Issue Price reflects a 1.8 per cent. discount to the closing mid-market price of 104.88 pence per Ordinary Share on 7 July 2014.


Net Asset Value Update

The Company has today published an audited Net Asset Value per Ordinary Share as at 31 May 2014 of 104.5 pence. The Company has also today published an unaudited Net Asset Value per Ordinary Share as at 30 June 2014 of 101.85 pence, prior to adjusting for the first interim dividend declared today by the Company of 1.85 pence per Ordinary Share. The reduction in Net Asset Value per Ordinary Share between 31 May 2014 and 30 June 2014 relates to the acquisition costs incurred on the acquisition of Next Big Box and Morrisons Big Box in June 2014.

Dividends

The Company's stated intention is to pay dividends on a half-yearly basis. The first interim dividend of 1.85 pence per Ordinary Share was declared today in relation to the period from the IPO to 30 June 2014 with a record date of 18 July 2014. After careful consideration, the Directors have decided not to offer a scrip alternative in connection with the first interim dividend, which will be payable on or around 8 August 2014. For the avoidance of doubt, Ordinary Shares subscribed pursuant to the Issue will not rank for the first interim dividend.

The Board is targeting an initial annual dividend yield (on a fully invested and geared basis) of 6 per cent. by reference to the IPO issue price of 100 pence1. The Company will seek to grow the dividend over the medium term as rent reviews are triggered on the Portfolio. Over a five year period, the Directors expect that the dividend will grow at a rate reflecting CPI/RPI due to the upward only rent reviews typically contained in the leases of existing and target assets.

The Company is currently targeting a dividend of at least 2.3 pence per Ordinary Share for the six months ending 31 December 20141. In arriving at this figure, the Directors have assumed that the Issue is fully subscribed and the net proceeds are invested on a straight line basis over a four month period following Admission, with suitable assets being acquired with similar return and gearing parameters as for the existing Portfolio.

Admission to the Official List

As stated at the time of the Company's IPO, the Directors' objective has been to move the Company to the Official List of the FCA as soon as practicable, inter alia, once it had met the applicable listing criteria. The Company is, therefore, seeking to move the trading of its entire issued and to be issued share capital from the Specialist Fund Market and the Official List of the CISEA to the Main Market of the London Stock Exchange and to list on the Official List of the FCA. The Directors believe that such a move is in the best interests of the Company and Shareholders as a whole.

A key benefit of the move to the Official List is that the Company will become eligible for inclusion in both the FTSE EPRA/NAREIT index series and the FTSE UK index series which is expected to make the Company's shares more attractive to a broader range of institutional investors.

The Company has provided notice to Shareholders of the intended cancellation of its listing on the Official List of the CISEA in accordance with Rule 3.5.9 of the CISEA Listing Rules. The CISEA De-Listing is conditional upon Admission.

Alternative Investment Fund Manager ("AIFM")

The Company's manager, Tritax Management LLP (the "Manager"), became authorised by the FCA as an Alternative Investment Fund Manager on 1 July 2014.

Circular

The Company has also posted the Circular to Shareholders, today (the "Circular"), convening the General Meeting at which the Directors are seeking authority to, inter alia: (i) issue and allot Ordinary Shares in respect of the Issue; and (ii) issue and allot Ordinary Shares in respect of the Share Issuance Programme.

[skinny] 08/7/2014 15:17

The Board of Directors of Tritax Big Box REIT plc (ticker: BBOX) has today declared a dividend in respect of the period from admission of the share capital of the Company to trading on the Specialist Fund Market on 9 December 2013 to 30 June 2014 of 1.85 pence per Ordinary Share, payable on or around 8 August 2014 to Ordinary Shareholders on the register on 18 July 2014. The ex-dividend date will be 16 July 2014.

[daveofdevon] 30/6/2014 10:01

Many thanks wirralowl I have taken the opportunity to post my views on the new thread.

[wirralowl] 30/6/2014 09:31

No worries Jaws, I've added them for you. Also found a Midas tip which I've posted on the relevant thread. Apologies for off-topic...

[jaws6] 30/6/2014 09:25

edit
Thanks.

[jaws6] 30/6/2014 09:24

Wirral
Thanks
edited for ESP thread

[wirralowl] 30/6/2014 09:17

DAVEOFDEVON, I've just set up a thread for you, but don't have much in the way of details for ESP, please feel free to add...

Link below:

[jaws6] 30/6/2014 08:30

Dave
Please ask on help thread ,they will tell you .I do not do new thread but ESP worth a thread.

[daveofdevon] 30/6/2014 06:23

Could anybody who knows how to get a new thread started please get one going with the same layout as above for EMPIRIC STUDENT PROPERTIES code ESP

Its a similar sort of investment to BBOX and is a Reit doing university accommodation rentals. 1st day today initial yield 6% paid quarterly.

I wish I knew how to get a header layout started but my brain aint build that way !!

[mach100] 21/6/2014 11:02

It fell on Friday so I presume the placing will be at a discount.I will be suscribing for more as the yield is good and the move to a premium listing should help to widen the shareholder base.

[topvest] 20/6/2014 06:43

Yes, sounds encouraging. I haven't been able to buy this share up to now as Charles Stanley no longer allows you to buy SFM shares. Hopefully, I can pick some up at a reasonable price on a premium listing.

[skinny] 20/6/2014 06:03

The Board of Directors (the "Board") of Tritax Big Box REIT plc (ticker: BBOX) (the "Company") announces that the Company is considering raising additional equity share capital through a placing, open offer and offer for subscription with a target fundraising size of £150 million, expected to close in July. As referred to in the Company's IPO prospectus, the Company also intends, at the same time, to transfer its listing from the Specialist Fund Market to the premium listing segment of the Official List of the UK Financial Conduct Authority.

The Company has successfully invested the proceeds of its initial £200 million fundraise and its subsequent £20.8 million placing in a portfolio of six Big Box assets let to institutional-grade tenants, with appropriate levels of debt drawn down against the assets in line with the Company's investment policy. The Board and the Manager believe that there is a strong pipeline of suitable new investment opportunities and the Company is in detailed discussions in relation to the potential acquisition of a number of additional assets.

A further announcement will be made in due course.

[skinny] 18/6/2014 12:40

ACQUISITION AND FINANCING OF MORRISONS DISTRIBUTION CENTRE, SITTINGBOURNE FOR £97.8 MILLION

The Board of Tritax Big Box REIT plc (LSE: BBOX) is pleased to announce that it has exchanged contracts for the acquisition of the Wm Morrison Supermarkets plc South East Regional Distribution Centre at Sittingbourne, Kent for a purchase price of £97.8 million (net of acquisition costs), reflecting a net initial yield of 5.2% on the acquisition. The Board is also pleased to announce that the Company has signed an agreement with Barclays Bank PLC to provide £53.8 million of senior debt financing secured on the asset. This reflects a loan to value ratio of approximately 55%. Completion and drawdown of the loan facility is expected to take place on 24 June 2014. This asset is the second of the two additional assets noted as being in advanced negotiations in the Company's announcement dated 30 May 2014. The Company is now substantially fully invested.

The distribution facility was developed in 2009 and comprises 919,443 sq. ft. of ground floor area with low site cover of approximately 42%. It incorporates modern design features, including two large purpose built units which are used for 'ambient goods' and 'chilled food' respectively. Both buildings also have good energy efficiency standards. The distribution centre is strategically located with excellent transportation connections via road (M2 & M25), deepwater/port facilities (Tilbury and Thames Gateway) and the Channel Tunnel (Folkestone), which lies 31 miles to the south east for mainland Europe.

Sittingbourne has a strong industrial and growing logistics presence within the South East, benefiting from its close proximity to London and infrastructure and transport links.

The distribution centre is being acquired from Wm Morrison Supermarkets plc subject to a new leaseback agreement for 25 years and with annual rent reviews indexed to RPI (subject to a 2% cap).

The debt financing is for a term of five years, with an option to extend up to a maximum of seven years. Following drawdown of the loan, the Company's aggregate borrowings will be 45% of gross assets. The blended margin payable across the Company's financings to date is approximately 175 bps above three month LIBOR.

[m.t.glass] 11/6/2014 06:48

With each of the properties they have recently acquired being as appealing as described, what is the reason the sellers sold?

[skinny] 11/6/2014 06:03

The Board of Tritax Big Box REIT plc (LSE: BBOX) is pleased to announce that it has exchanged contracts for the acquisition of Next Group Plc's Regional Distribution Warehouse facility at West Moor Park, Doncaster for a purchase price of £60 million (net of acquisition costs), reflecting a net initial yield of 6.07% on the acquisition. The Board is also pleased to announce that the Company has signed an agreement with Barclays Bank PLC to provide £16.4 million of senior debt financing secured on the asset. This reflects a loan to value ratio of approximately 27%. Completion and drawdown of the loan facility is expected to take place on 17 June 2014. This asset is one of the two additional assets noted as being in advanced negotiations in the Company's announcement dated 30 May 2014.

The distribution warehouse was originally developed in 2003 and let to Next for a 20 year term without breaks. It incorporates modern design features including 17.5 metre eaves, office accommodation, cross docking, extensive and secure loading and car parking facilities and a low site cover of approximately 45%. The building was extended in 2005 to 755,052 sq ft of ground floor area; in addition, a first and second floor mezzanine storage area of 106,552 sq ft was installed, with a sophisticated automated storage system.

Doncaster is one of largest commercial centres in South Yorkshire and is also one of the most important distribution locations in the UK due to its excellent motorway and rail connections, as well as its close proximity to the Humber Ports.

The distribution warehouse is being acquired with an unexpired lease term of approximately 9 years, which is subject to five yearly upward only open market rent reviews with the next review scheduled for March 2018.

The debt financing is for a term of four years, with an option to extend prior to the end of year one up to a maximum of five years. The blended margin payable across the Company's financings to date is approximately 190 bps above three month LIBOR.

Roebuck Asset Management represented the Company. CBRE represented the vendor.

[skinny] 04/6/2014 06:06

FINANCING OF MARKS & SPENCER EAST MIDLANDS DISTRIBUTION CENTRE &
TESCO DISTRIBUTION CENTRE, SOUTHMEAD INDUSTRIAL ESTATE, DIDCOT

Further to the acquisitions of the Marks & Spencer East Midlands Distribution Centre at Castle Donington, Leicestershire announced on 13 December 2013 and the Tesco Distribution Centre at Southmead Industrial Estate, Didcot announced on 4 April 2014, the Board of Tritax Big Box REIT plc (ticker: BBOX) is pleased to announce that the Company has signed agreements with Barclays Bank PLC to provide £49.3 million and £12.2 million respectively of senior debt financing secured individually on the assets. These reflect loan to value ratios of approximately 59% and 45% respectively. The debt financing for Marks & Spencer East Midlands Distribution Centre is for a term of five years, with an option to extend prior to the end of year two and three up to a maximum of seven years, with a margin of 200 bps above three month LIBOR. The debt financing for Tesco Didcot Distribution Centre is for a term of four years, with an option to extend prior to the end of year one up to a maximum of five years, with a margin of 185 bps above three month LIBOR.

As previously noted, the Group intends to operate a flexible gearing strategy with respect to individual assets. Generally, the Group expects to utilise borrowings to a greater extent on individual assets with longer unexpired lease lengths, while assets with shorter lease terms are expected to be geared to a lesser extent.

Following drawdown of the loans, the Group's aggregate borrowings will be 45% of the Group's gross assets. As set out in the Company's investment policy, the Group's initial target level of aggregate borrowings is 45% of the Group's gross assets, once fully invested, with a medium term target of 40% of the Group's gross assets.

[mach100] 30/5/2014 20:36

Only a small tick down today considering it is a 10% placing but had drifted down recently which may mean the company is a bit leaky. However I am sure it will recover quickly as they make impressive acquisitions. I know it's cheaper for them in a guaranteed successful placing, but would it be too much to ask for companies not to expect pi's to always live off crumbs and never invite us to sure fire placings!

[skinny] 30/5/2014 09:19

Further to the announcement earlier today, the Board of Directors (the "Board") of Tritax Big Box REIT plc (ticker: BBOX) (the "Company"), is pleased to announce that it has received commitments from institutional investors for 19.98 million new ordinary shares of £0.01 each in the Company (the "Placing Shares"), representing approximately 9.99 per cent of the Company's existing issued share capital (the "Placing").

Accordingly the Placing is now closed and the issue price has been set at 104 pence per share.

Application will be made to the London Stock Exchange and the Channel Islands Securities Exchange Authority Limited (formerly the Channel Islands Stock Exchange) ("CISEA") for the Placing Shares to be admitted to trading on the Specialist Fund Market of the London Stock Exchange and the CISEA ("Admission"). It is expected that Admission will become effective on 4 June 2014.

The Placing Shares will, when issued, be credited as fully paid and rank pari passu with the existing ordinary shares of £0.01 each in the capital of the Company, including the right to receive all future dividends and distributions declared, made or paid (including the Company's initial interim dividend due to be declared in August 2014).

[skinny] 30/5/2014 06:59

The Board of Directors (the "Board") of Tritax Big Box REIT plc (ticker: BBOX) (the "Company"), announces that the Company is seeking to place with institutional investors up to 19.98 million new ordinary shares of £0.01 each in the Company (the "Placing Shares"), representing approximately 9.99 per cent of the Company's existing issued share capital (the "Placing").

As set out in the Interim Management Statement on 19 May 2014, the Company has successfully invested £187.17m of the net proceeds of its initial fundraise, acquiring four distribution centres. In April 2014, the Company also signed an agreement with Barclays Bank PLC to provide £23.5 million of senior debt financing to Sainsbury's distribution centre in Sherburn-in-Elmet, Leeds.

The Board believes that there is a healthy pipeline of suitable new investment opportunities and the Company is currently in advanced negotiations in relation to the acquisition of two additional assets. It is intended that the capital raised via the Placing will be used in the near term to assist in financing these investment opportunities.

The Placing is expected to close at 12 noon (London time) today but may close earlier or later at the absolute discretion of the Company. The issue price will be determined by a book build process and is expected to be at a level which is accretive to the net asset value per share of the Company, after costs.

Application will be made to the London Stock Exchange and the Channel Islands Securities Exchange Authority Limited (formerly the Channel Islands Stock Exchange) ("CISEA") for the Placing Shares to be admitted to trading on the Specialist Fund Market of the London Stock Exchange and the CISEA ("Admission"). It is expected that Admission will become effective on 4 June 2014.

The Placing Shares will, when issued, be credited as fully paid and rank pari passu with the existing ordinary shares of £0.01 each in the capital of the Company, including the right to receive all future dividends and distributions declared, made or paid (including the Company's initial interim dividend due to be declared in August 2014).

In connection with the Placing, Jefferies is acting as sole bookrunner and Akur is acting as financial adviser to the Company.

[contrarian2investor] 20/5/2014 16:57

Today I bought some BBOX for my stocks instead of cash portfolio after reading their Interim results. A secure dividend of 5.4% for my buying price looks a lot better than holding cash. GLA c2i

[mach100] 19/5/2014 06:48

Should be a 6% divi announced in August. A good safe yield should attract more investors looking for a good return on their money. They have invested very wisely across a range of the large supermarkets. Plenty to like about this share and seems immune from market volatility.

[skinny] 19/5/2014 06:12

HIGHLIGHTS
· IPO in December 2013 fully subscribed raising £200m
· Admitted to the Specialist Fund Market of the London Stock Exchange and listed on the Channel Islands Stock Exchange on 9 December 2013
· Over £187m of net IPO proceeds invested in portfolio of four distribution centres let to institutional-grade tenants
· Secured £23.5m senior debt financing in April 2014 to Sainsbury's distribution centre in Sherburn-in-Elmet, Leeds
· Initial portfolio is performing in line with management expectations
· Healthy pipeline of further suitable new investment opportunities being pursued

[skinny] 01/5/2014 06:16

Jefferies International Buy 0.00 109.13 114.00 114.00 Reiterates