Tritax EuroBox plc (LON:EBOX) has successfully exchanged contracts for the disposal of its warehouse asset in Gothenburg, Sweden for a price of SEK 385 million[1] to a leading pan-European real estate investment manager. The sale price is broadly in line with the valuation as at 30 September 2023 and supports the Company’s planned disposal programme primarily aimed at reducing the Company’s leverage.
Highlights
· The 28,900 sqm building was purchased in June 2021 and is in the port of Gothenburg.
· Headline sale price of SEK 385 million1 is broadly in line with the latest September 2023 external valuation. The deal is conditional on approval in accordance with the Swedish Foreign Direct Investments Act.
· The divestment represents the Company’s second disposal in Sweden, following the sale of the asset in Malmo at the end of 2023.
· Proceeds will be mainly used to reduce net debt, as part of the programme to improve balance sheet metrics, as well as providing scope for investment into existing portfolio opportunities.
Overview
The Company acquired the 28,900 sqm prime logistics property in Gothenburg, Sweden in 2021. It is situated in the Gothenburg region, a strategic location between Stockholm, Oslo and Copenhagen. In the Interim Results announcement in May 2023, the Company outlined its intention to undertake asset disposals of at least €150 million over the following 12-18-month period. The programme was launched with two principal aims: namely, to improve balance sheet metrics, particularly reducing the LTV percentage towards the low 40s, and to fund existing opportunities from within the portfolio.
Company commentary
Alina Iorgulescu, Investment Director, Tritax EuroBox plc, commented:
“This transaction marks the fourth successful sale since we announced our disposal programme in May 2023 and takes gross proceeds realised over the past 12 months to c.€173 million. The positive progress made on our disposal programme is testament to our proactive approach while the Gothenburg sale, which was agreed at a price broadly in line with the valuation, underlines the attractiveness of our high-quality portfolio to investors.”
