Tritax EuroBox launches £300m IPO

Tritax EuroBox is looking to raise £300m through an initial public offering for a portfolio focused on European real estate. It said it has identified a €1.8bn pipeline of assets around Europe, with seven assets worth in excess of €600m in advanced negotiations. Tritax Big Box REIT’s investment manager, Tritax Management, will be the company’s alternative investment fund manager, though it will have a fund management team distinct from Tritax and a separate board chaired by Robert Orr. Jefferies International and Kempen are acting as joint coordinators, bookrunners and advisers. The company said it will focus on assets in the most established logistics markets, where it said occupier demand for logistics assets is undergoing a major long-term structural change. Its management advisory team will consist of Logistics Capital Partners, Dietz Asset Management and CBRE, which will provide property management services. The average asset size is more than 1.1m sq ft and average lot size is €87m in the already identified pipeline, with an unexpired lease team of 12.4 years. Gearing will be targeted at 45%. Orr said: “The Tritax team has an impressive track record of delivering consistent income and strong capital returns by investing in logistics real estate. Tritax Big Box REIT, which is managed by Tritax, is focused on the UK market and has delivered an annualised total shareholder return of 15.6% since its IPO in December 2013. “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.”   To send feedback, e-mail alex.peace@egi.co.uk or tweet @egalexpeace or @estatesgazette