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22 October 2018
The Board of Tritax EuroBox plc (tickers: EBOX (Sterling), BOXE (Euro)), which invests in Continental European logistics assets,is pleased to announce it has entered into a new €200 million unsecured revolving credit facility (the “NewFacility”). The New Facility will provide the Company with flexible committed capital, at an attractive margin, to help finance the acquisition of investment opportunities in its strong identified pipeline.
The New Facility has an opening margin of 1.55% and an initial maturity of five years which can be extended, subject to lender support, by two further years, up to a maximum maturity of seven years.
When fully drawn down, the loan to value ratio (“LTV”) of the Company’s portfolio will be approximately 38% against a medium term LTV target of 45%.
The syndicate for the New Facility comprises HSBC Bank plc and BNP Paribas, London Branch. HSBC Bank plc will act as agent for the New Facility. The Company was advised on the financing by Lazard & Co., Limited.
Nick Preston, Fund Manager for Tritax EuroBox plc, commented:
“This financing represents a significant milestone for the Company following its Initial Public Offering in July 2018. The €200 million New Facility offers the Company a highly attractive cost of debt and the unsecured structure provides significant operational flexibility, underlining the support for our strategy and strong sector fundamentals.
We are delighted that HSBC Bank plc and BNP Paribas, London Branch have supported us in this financing and we look forward to developing these relationships and new ones with additional banks to provide further flexible liquidity as the Company increases the size of its portfolio.”
For further information, please contact:
Tel: +44 (0)20 7290 1616
Jefferies International Limited
Tel: +44 (0)20 7029 8000
Kempen & Co N.V.
Thomas ten Hoedt
Tel: +33 (0)20 348 8500
Newgate Communications (PR Adviser)
Tel: +44 (0)20 7680 6550
Tritax EuroBox plcintends to acquire and manage a well-diversified portfolio of well-located Continental European logistics real estate assets that are expected to deliver an attractive capital return and secure income to shareholders. These assets will fulfil key roles in the logistics and distribution supply-chain focused on the most established logistics markets and on the major population centres across core Continental European countries.
Occupier demand for Continental European logistics assets is in the midst of a major long-term structural change principally driven by the growth of e-commerce. This is evidenced by technological advancements, increased automation and supply-chain optimisation, set against a backdrop of resurgent economic growth across much of Continental Europe.
The Company’s Manager, Tritax Management LLP, has assembled a full-service European logistics asset management capability including specialist “on the ground” asset and property managers with strong market standings in the Continental European logistics sector. The appointed asset managers Logistics Capital Partners (“LCP”) and Dietz AG (“Dietz”) are logistics specialists and offer the Company exposure to high quality asset management expertise and access to their respective development pipelines, providing acquisition opportunities across Continental Europe.
The Company is targeting, on a fully invested and geared basis, an initial Ordinary Share dividend yield of 4.75% p.a.¹, which is expected to increase progressively through regular indexation events inherent in underlying lease agreements, and a total return on the Ordinary Shares of 9.0% p.a.¹ over the medium-term. The Company intends to pay dividends on a quarterly basis with shareholders able to receive dividends in Sterling or Euro.
Further information on Tritax EuroBox plc is available at www.tritaxeurobox.co.uk
1. Euro denominated returns, by reference to IPO issue price. These are targets only and not profit forecasts. There can be no assurances that these targets will be met and they should not be taken as indications of the Company’s expected or actual future results. Accordingly, potential investors should not place any reliance on these targets in deciding whether or not to invest in the Company and should decide for themselves whether the targets are reasonable or achievable.