Tritax Big Box has sold a 660,000 sq ft shed in Raunds, Northamptonshire, for £84.3m and posted an increase in half-year profit.
The sale, in line with its December 2022 and June 2023 valuations, reflected a net initial yield of 4%. The buyer is a leading UK institutional investor.
The warehouse is one of three buildings at Raunds developed for and let to Howdens Joinery Group. Howdens holds an unexpired lease term at exchange of approximately 23 years. Howdens continues to occupy the remaining two buildings, which are owned by Tritax Big Box.
The transaction brings the total value of the REIT’s disposals so far in 2023 to approximately £235m.
Tritax Big Box’s half-year results, showed a 7.5% rise in profit to £95.5m but a 0.2% dip in portfolio value to £5.05bn. Its total accounting return has fallen from 10.7% for the first half of 2022 to 3.5%, with IFRS earnings per share down 78% to 5.39p.
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