Tritax Big Box Reit Share Discussion Threads

[williamcooper104] 13/11/2020 07:31

Thanks for posting What's not to like there

[skinny] 13/11/2020 07:01

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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"

[williamcooper104] 11/11/2020 22:05

Nope - haven't heard any whispers or approaches But suffice to say - there's record amounts of unspent PE money and a lot of it is looking at public to private transactions

[scruff1] 11/11/2020 21:41

William
Maybe but have you read any whispers about likely candidates?

[alter ego] 11/11/2020 15:32

don't wake him up ffs

[financeguru] 11/11/2020 15:04

anyone seen Buywell ???

[williamcooper104] 10/11/2020 22:24

List as long as the old yellow pages :) Everyone wants into the space Every fund manager/investor/PE house wants exposure External management contracts though could have poison pills

[scruff1] 10/11/2020 22:02

If a take out was in the offing who do you see as likely suitors?

[scruff1] 10/11/2020 21:59

That may be a point. Maybe some think this has peaked for a while and using the cash to try and catch a quick profit on some of the rapid risers that have a few months in the doldrums eg BP but lots of others.
Maybe that a vaccine is seen as a shot in the arm to the high street and therefore less pressure on BBx's - bit weak I know.

[williamcooper104] 10/11/2020 21:22

Not sure - certainly goes against weight of money in private markets Could be generalist equity investors fleeing to recovery stocks - appears that way with PLD/SGRO If dips further will add If dips further then given weight in private markets a take over bid is likely

[scruff1] 10/11/2020 21:09

Im surprised that weve had another day of sustained drop. If its profit taking now they could have done it Friday. share price was higher then. Is there another interpretation?

[skinny] 10/11/2020 06:36

I'm more than happy to hold here - new high touched yesterday @171.60p.

Dividend this Friday (13th).

[williamcooper104] 10/11/2020 00:26

Interesting movements - the big boys PLD and SGRO tanked c5 percent (I sold out of SGRO as thought BBOX better relative value) BBOX is trading a little below NAV (my guess c5 percent at next valuation date) Whereas SGRO is at a huge premium

[scruff1] 09/11/2020 21:03

Well it looked exciting til dinner time ! Profit taking I presume - cant blame em

[williamcooper104] 31/10/2020 17:38

And yet another deal closed - this time 10 percent above asking £500m - secondary assets at 4.9 percent - bought by BLackstone Core Plus fund (eg seeking 6-8 returns) Not going to be a lot, or rather any, non-on line retail spend this Christmas

[williamcooper104] 28/10/2020 08:44

Moutpark $550m logistics deal, all new build so little reversion, 15 year WALT, went under offer today at sub 4 - note that prime logistics yields were previously c4.3-5 Also the reversionary yield on the Canning Town asset that Segro bought was 4 percent with the NEY at 3.3 percent

[norland1] 27/10/2020 22:42

Back to school for me. I think.

[scruff1] 27/10/2020 22:20

Blimey William. I used to have a chemistry teacher like you. He was a really clever bloke -I think.

[williamcooper104] 27/10/2020 21:09

The returns for core plus investors are there at tight yields due to rental growth - there's 94m sf of demand - equiv yields haven't moved in as much it's more revisionary driven Buy at 3, get 3 rental growth lever 50 at 2 debt cost and you are at 10 Don't lever and you are still getting 5-6 IRRs which more than works for core The 2.57 is one example but there's plenty more that are going under offer/being bid up at moment (and of course not all of BBOXs assets are at sub 3 yields but they are all floating on the same sea)

[chucko1] 27/10/2020 20:25

"weight of capital" means little (though is more positive than negative, by definition). You can have substantial capital earmarked for sheds, logistics or whatever, but often it sits there waiting for an acceptable return. Who knows, it may all get invested and push prices higher (yields lower), but until it does, the needle has not moved.

Also, one single transaction cannot be used to move an entire index (were there one) by 50-80bps. But if much of this increasing capital leads to offers at higher levels, then yes, the needle has truly moved.

Unless the agent is comparing the market with 6 months ago, but that is stretching the meaning of 10 days.

[thewheeliedealer] 27/10/2020 20:21

Hi all,

My mate Peter @Conkers3 and myself did a ‘Twin Petes Investing’ Podcast a few days ago and part of our discussion includes BBOX and recent developments on the Chart. We also chatted about loads of other Stocks and Ideas for research, and the outlook for Markets and as usual a fair bit of educational stuff with regards to Investing which this week included the concept of ‘Badwill’ and a lot on how we seek out ‘under the radar’ stocks.

Anyway, if you use Apple, Audioboom, Overcast or Spotify you can find it under the 'Conkers Corner' Channel (you want Podcast TPI 34) and you can find it on Soundcloud at the link below.

I hope you enjoy it and find it useful,

Cheers, WD
@wheeliedealer

[williamcooper104] 27/10/2020 20:01

2.57 evidence from a week ago - Bond Street yield for an east London shed (which was 25 percent north of marketing price), the ever increasing weight of capital and many transactions about to go under offer at higher pricing levels

[chucko1] 27/10/2020 19:44

How on earth can that be? 50-80bps comes from what evidence? Gilts are actually out a few bps, so it's not from that direction (which is stating the obvious). There would need to be several significant transactions to suggest a move like that. In the last 10 days???

[williamcooper104] 27/10/2020 16:19

Chatted to an agent today and an investor - both confirming that yields are in 50-80bps in last 10 days or so (that's about a 10-20 percent capital value increase) The weight of money is getting weightier