Investors keen for warehouses as Tritax £250m placing oversubscribed

11th Feb 2019 07:31

(Sharecast News) - Tritax Big Box REIT said its open offer to raise £250m was oversubscribed as investors piled in to support the company's purchase of an 87% stake in privately owned logistics development firm db Symmetry.Tritax partner Godfrey Palmer said the acquisition provided Tritax with access to a large portfolio of "attractive and high quality development opportunities over the longer term that we...believe can be delivered at a yield on cost significantly higher than is currently available in the investment market from acquisitions of built and let or pre-let forward funded assets".The acquisition was expected to "contribute materially to the company's ability to continue to deliver strong earnings growth and a progressive dividend policy as well as significant valuation gains as these assets move through development to become income producing", the company said.Tritax in January agreed to buy the stake through a payment of £202.4m in cash, equalling 69.1% of db's equity value, and £52.6m in shares, equalling 17.9% of the value.db owns a 2,500 acre land portfolio and has 26 warehouses under construction.