Tritax Big Box Reit Share Discussion Threads

[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"

[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