Tritax EuroBox plc has agreed the sale of its asset in Lodz, Poland, to clients of Savills Investment Management, for €65.5m, representing a 4.95% gross initial yield. The sale price is 15% above the property’s most recent 30 September 2020 valuation, delivering to shareholders an attractive geared IRR of 16.5% per annum.
Nick Preston, Fund Manager of Tritax EuroBox, commented: “This sale of one of our earlier acquisitions has delivered strong returns to our investors. The successful completion in May 2019 of the forward funding pre-let development opportunity to expand the existing site in Lodz by a further 52,000m², means we are in a position to crystallise a profit from a now stabilised asset, with a view to recycling the capital into higher returning investment opportunities. We can deploy this capital quickly due to a number of attractive opportunities both within the existing portfolio, and also from the pipeline of potential acquisitions secured from our asset management and development partners.”
Tritax EuroBox acquired the Polish asset, strategically located in Strykow, 15 km northeast of Lodz, in 2019 at a purchase cost of €55m, or a gross initial yield of 5.80%. The 101,555m² property is leased to French DIY chain Castorama, part of Kingfisher plc, and has provided a period of stable income as the portfolio has grown. With a lease term of 6.7 years remaining, the property has no imminent asset management opportunities.