Fund manager Tritax launches £200m float to buy big boxes

COMMERCIAL property fund manager Tritax yesterday announced a £200m flotation to launch the first listed pure “big box” UK real estate investment trust (REIT).

“Big boxes” are massive warehouses – typically bigger than 500,000 square feet – and Tritax said it would let them to “institutional-grade tenants” on long-term leases of up to 25 years.

Tritax said it would also benefit from “triple net” leases, where the tenant pays taxes, building insurance and property maintenance costs.

The initial public offering (IPO) is to be launched on the London Stock Exchange and Channel Islands Stock Exchange, with subscriptions opening at the beginning of next week.

Jefferies International Limited and Akur Limited are acting as joint financial advisers and Jefferies is sole bookrunner.

Demand for big boxes is increasing as retailers look for larger spaces to deliver internet orders from.

The REIT is aiming for a minimum dividend of six per cent and shareholder returns of more than nine per cent.

Tritax has acted as investment manager for over 20 per cent of all UK big box deals since 2012.