Tritax Big Box has today announced a new share issue designed to raise capital for investment in further UK logistics assets.
The real estate investment trust has issued 47,787,607 new ordinary shares at a Placing Price of 113 pence per share, which is set to raise gross proceeds of £54 million.
The share placing marks the final stage of Tritax’s share issue programme, under which the company has issued a total of 311,640,420 ordinary shares since November 2014, raising a total of £339 million.
Tritax is now involved in active discussions to reduce the overall cost of its borrowing, in line with the targets set out in the company’s investment policy.
Commenting on the latest share issue, non-executive chairman Richard Jewson said: “We have been delighted by the response from existing shareholders and new investors to the Company’s share issuance programme and thank them for their support.
“In a little over 18 months, Tritax has assembled a unique portfolio of 22 Big Box logistics assets with a valuation of over £1 billion and a strong diversified tenant base, whilst the Company has grown to be a FTSE 250 index constituent with broad secondary market liquidity and a low cost base.”
Partner Colin Godfrey added that the company has successfully delivered on its investment targets and is on course to pay an aggregate dividend of 6 pence for 2015.
“The logistics sector continues to exhibit robust capital and rental growth which is impacting positively on our portfolio,” he said. “The company’s investment pipeline is strong with a range of suitable assets at advanced stages of due diligence and negotiation.”
The expected timetable will see the ordinary shares begin trading on the London Stock Exchange’s main market for listed securities at 8.00am on 22 June 2015.
