Tritax Big Box REIT Plc (BBOX) has announced the successful sale of six properties, realising a total of £327m. This achievement by the FTSE 250 real estate investment trust aligns with recent valuations, confirming the sales at or above these figures.

The sold assets, located in Corby, Raunds, Knowsley, Skelmersdale, Worksop, and Littlebrook, cover a total area ranging between 84,000 and 848,000 square feet. These properties were leased to notable firms such as Eddie Stobart, Howdens, Matalan, DHL, and Cerealto, with the weighted average unexpired lease terms spanning from 1.4 years to nearly 23 years.

This strategic move by Tritax Big Box is in line with their long-term vision for portfolio optimisation. The company plans to reinvest the proceeds into ventures promising higher returns. Primarily, these funds will bolster the company’s development pipeline, where yields between 6% and 8% on investment costs are anticipated.

Furthermore, Tritax Big Box is considering opportunistic investment acquisitions as part of its strategy to maintain a balanced and growth-oriented approach to capital allocation. This is part of their broader plan for the 2023 financial year and beyond.

Colin Godfrey, Chief Executive Officer of Tritax Big Box, shared insights on this strategic manoeuvre. He remarked on the company’s ongoing efforts to optimise their portfolio, highlighting the successful realisation of value from assets that have yielded attractive returns under their ownership. Godfrey emphasised the company’s focus on recycling capital into more lucrative development and acquisition opportunities, underlining the high quality of their portfolio as evidenced by their ability to sell assets at or above book value amidst a backdrop of reduced levels of investment market activity.