Tritax Big Box Reit Share Discussion Threads

[scruff1] 12/2/2024 15:12

Agreed its a weak logic but its the best Ive got - why would BBOX want their retail et al - it doesnt really fit does it? Like someone posted the other day - wouldnt SHED be more logical?

[adamb1978] 12/2/2024 15:04

Not sure I buy the rationale of selling the UKCM non logistics assets. Assuming they're being carried at market value, then selling them doesnt create any value - it just swaps an asset for the equivalent cash amount.

Rationale has to centre around synergies from running the fund

[scruff1] 12/2/2024 14:09

Yep me too. Doesnt instantly grab me as the most obvious fit. Can only think the obvious synergies and possibly the sell off of the UKCM non logistics to fund an increase in the merged co's stock - but even that would seem a tad clumsy. Maybe they will surprise us. Maybe the increased size will attract investor interest - but obviously not today :-)

[speedsgh] 12/2/2024 13:44

"Speaking as just a BBOX holder - I'm totally underwhelmed by this - as it would seem, is the market."

Ditto. Need a more detailed justification to be convinced.

[skinny] 12/2/2024 12:44

Speaking as just a BBOX holder - I'm totally underwhelmed by this - as it would seem, is the market.

[topvest] 12/2/2024 12:25

Yes, its an interesting deal and a tad surprising. Benefits are probably around 1. Selling 40% of UKCMs non-logistics assets; 2. Use additional capital to buy more logistics assets; 3. Reduced costs and 4. For UKCM, eliminate the Phoenix blocking stake. It's a done deal on the UKCM side. I hold both, so am relatively relaxed.

[adamb1978] 12/2/2024 11:53

The logic would need to be predicated on synergies:

- don't need 2 investment teams - perhaps need 1.5 teams but there has to be some synergies there
- remove other opex such as 2 lots of listing fees, NEDs, offices etc
- possibly greater scale helps slightly better financing terms

I'm not sure how much all that comes to on a per share basis

[speedsgh] 12/2/2024 10:46

Fail to see the logic behind this proposal. Look forward to BBOX communicating that in more depth to its shareholders.

UKCM provided its shareholders with an update on Friday last week. That presentation can be seen here -

Q4 portfolio sector weighting by market value (Portfolio Structure at 14m38s) was:

~ Industrial 59%
~ Retail 14%
~ Offices 12%
~ Other 15%

Can only assume that BBOX will be looking to sell on the non-industrial assets.

[adamb1978] 12/2/2024 08:30

Has anyone run the numbers on the financial impact? I wouldnt have thought that the synergies would be huge which limits the premium able to be paid such that the deal remains accretive

[yump] 12/2/2024 08:30

If the yield stays the same for the combined group, the advantage for investors is perhaps a better capital gain, as a result of more fund interest in a larger group than in two smaller ones. Maybe a more secure yield especially if weaker or more volatile rental property is sold.

Although it takes the diversification out of our hands.

[nickrl] 12/2/2024 08:22

Perhaps Picton will come back and put a better offer in for ukcm and spare us!

[nickrl] 10/2/2024 13:26

This is bizarre merger proposition unless Aberdeen are going to slash their fees whats the point? Perhaps they sense logistics is no longer looking so favourable so want something else to bolster the income stream. Also UKCM share price much higher so going to be interesting to see what terms are. However, if correct they must Phoenix support otherwise it won't happen.

[riverman77] 10/2/2024 11:48

EBOX would give them a foothold into Europe if they wanted to move in the Segro direction as a pan European operator.

[skyship] 10/2/2024 11:16

UKCM would be bizarre; but the share price there has been surprisingly strong recently - someone been buying for sure.

BBOX would of course be using its own very strong equity, trading on a mere 12.3% discount and 4.4% yield. However, likely to do a CREI and collapse sharpish on the news.

Agree with Riverman, EBOX would have been a better fit; though of course a pretty major departure into Euroland.

Will it instigate a sector rally; or are those left just too small to be of interest?

[riverman77] 10/2/2024 09:51

An odd choice given UKCM has a load of offices and retail, which presumably they'll want to sell to remain a pure play logistics company. I guess a quick way to increase scale. SHED WHR or even EBOX would have been better choices.

[igoe104] 10/2/2024 09:25

Should push the new group into FTSE 100, which will attract more fund buying...

[8w] 10/2/2024 07:48

BBOX and UKCM ? Can't see the two of them as a logical combination. What has prompted this corporate action

[williamcooper104] 09/2/2024 23:47

It's UKCM No word of price/termsOther than in reality it's BBOX buying them than a merger Both now managed by Arbdn though don't think shareholders will see any management synergies

[igoe104] 09/2/2024 22:09

WHR or shed will suit me. 🤞

[riverman77] 09/2/2024 22:06

SHED is a logical fit. Was hoping it might have been EBOX - would help lift the share price out of the doldrums.

[george stobbart] 09/2/2024 20:07

SHED LN is chattered

[riverman77] 09/2/2024 20:05

Hi William - do you know who they're merging with? Can't access the article.

[williamcooper104] 09/2/2024 19:28

Shall await details But given where BBOX trading at likely to be accretive