8th Jun 2015 09:50
LONDON (Alliance News) - Tritax Big Box REIT PLC Monday said it intends to raise up to GBP125 million by placing shares at 113 pence each, and separately said it has signed contracts to provide forward funding for the development of a new distribution warehouse facility that has been fully pre-let to homewares retailer Dunelm Group PLC.
The property investor said its placing will make up the final tranche of its share issuance programme that's valid until July 7. There are still 86.1 million shares available for issue under the programme, and Tritax will combine that with its general authority to issue shares for a cash on a non-pre-emptive basis to hit its placing target. The placing size could be raised to about GBP148 million if demand exceeds the initial target.
Tritax has used up nearly all the money it currently has available to it. It raised GBP175 million in a placing in March, but has bought five logistics warehouse assets for a total of about GBP238.2 million, net of acquisition costs, since then. It has also completed on two additional forward funded pre-let developments for an aggregate investment price of GBP72.1 million.
"The company's pipeline continues to be strong and the Manager is engaged in detailed discussions with the current owners of a number of other suitable assets that meet the company's Investment Policy and are available for potential acquisition in the near term," it said.
The placing price reflects a 2.8% discount to Friday's closing price of 116.25 pence a share.
The fundraising comes as Tritax said it will invest GBP43.43 million in developing Dunelm's new distribution facility, representing a yield of 5.47% net of acquisition costs.
The new facility, in Stoke-on-Trent and close to the motorway network, will comprise a gross internal floor area of 526,426 square foot across a site of 24.89 acres, reflecting a site cover of about 47%.
The facility will be leased to Dunelm (Soft Furnishings) Ltd on a new 10 year lease, subject to a five yearly upward only open market rent review after five years. During the construction phase, Tritax will receive an income return equivalent to the rent from the developer.
By Steve McGrath; [email protected]; @stevemcgrath1
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