Logistics investor Tritax Big Box REIT has raised £250m through a share issue to fund its acquisition of an 87% stake in developer DB Symmetry.
The deal, announced in January, is expected to be completed formally on 19 February. Tritax said that the offer was over-subscribed.
Warehouse specialist DB Symmetry is one of the largest privately-owned developers in the UK, and was formed out of a 60:40 joint venture between clients of Delancey and Barwood. The business is led by four directors; Andrew Dickman in the Manchester office, and Richard Bowen, Henry Chapman and Christian Matthews in Northampton.
DBS HoldCo, a wholly-owned subsidiary of Tritax, will acquire 87% of DB Symmetry, through a payment of £202.4m in cash, and £52.6m in shares. The four directors hold a 40% stake, while the remaining 60% is owned by Delancey’s fund DV4 Properties, which will now exit the business.
Dickman, Bowen, Chapman and Matthews will all retain a 13% interest in DB Symmetry, through shares in the DBS HoldCo, representing a £38.1m value.
Sir Richard Jewson, non-executive chairman of Tritax Big Box REIT, said: “The board is pleased with the response from the company’s shareholders and the strength of their support to complete this fundraising successfully. It enables the company to move forward with the acquisition of db Symmetry, which represents a significant opportunity for future further growth.”
Colin Godfrey, partner of Tritax, said: “The acquisition provides the company 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.
“This means that we expect to continue to deliver new, high quality assets which have the potential to attract the highest quality institutional-grade tenants over the short and longer term.”
Jefferies International and Akur are acting for Tritax in relation to the issue, with Lazard & Co representing it in in the DB Symmetry deal.
In the North West, DB Symmetry is working with Pochin’s in a joint venture to deliver Ma6nitude, a potential 2m sq ft industrial park in Middlewich, Cheshire. A planning application for a 1.6m sq ft development in Wigan is also under consideration, as well as a masterplan with Liverpool City Council for 1.6m sq ft at Speke.
In September last year, Tritax agreed to forward-fund a 360,000 sq ft warehouse in Haydock, being delivered by Bericote. The fund also owns warehouses across the region in areas such as Trafford Park and Carlisle Lake District Airport.