UK logistics specialist Tritax Big Box REIT has confirmed the launch of an IPO to raise up to £300 mln (€340 mln) to invest in mainland European warehouses.
The new investment trust, Tritax EuroBox, will be externally managed by Tritax, the investment management arm of Tritax Big Box, and focus on building a diversified portfolio in the most established logistics locations.
Tritax said it has already identified a strong pipeline of large-scale logistics assets with a total value of more than €1.8 bn. Most of the properties have been sourced on an off-market basis, with a focus on standing assets and pre-let forward-funded developments.
The company is in negotiations on seven assets for a combined outlay of more than €600 mln, four of which have been sourced through its asset managers, Logistics Capital Partners (LCP) and Dietz Asset Management. The assets are located in Germany, Italy, the Netherlands, Poland and Spain, with an average lot size of more than 105,000 m2.
Tritax is targeting an initial ordinary share dividend yield of 4.75% p.a. and a total return on ordinary shares of 9.0% p.a., with dividends paid on a quarterly basis.
Robert Orr, chairman of Tritax EuroBox, said: 'We believe a significant investment opportunity now exists in the Continental European logistics real estate market and the Tritax team has identified a strong pipeline of high quality, large scale logistics assets let to institutional grade tenants.
'We aim to draw on the Tritax team’s sector specialist expertise to achieve our objective of delivering an attractive capital return and secure income to shareholders.'