Tritax, the investment manager of Tritax Big Box REIT, is exploring the launch of a new U.K. investment trust focused on investing in the Continental European logistics market through an initial public offering on the London Stock Exchange.
The new investment trust, Tritax EuroBox, will seek to capitalize on Tritax’s extensive logistics experience and long-established network of key occupier, owner, developer and agency relationships. Tritax EuroBox will be externally managed by Tritax with a core fund management team distinct from Tritax Big Box REIT plc and a separate board of independent non-executive directors.
Occupier demand for Continental European logistics is in the midst of a major long-term structural increase driven by the growth of e-commerce, technological advancements and the drive for supply-chain optimization, set against a backdrop of resurgent economic growth across much of Continental Europe.
Tritax EuroBox will seek to build a well-diversified portfolio of European logistics assets that fulfill key roles in the logistics and distribution supply chain focused on the most established logistics markets and on the major population centers and logistics terminals across core Continental European countries.
Tritax has identified a pipeline of high-quality, large-scale logistics assets leased to institutional-grade tenants with income underpinned by lease agreements incorporating indexation provisions. Tritax is in advanced negotiations with respect to in excess of €600 million ($704 million) of potential investments out of a wider €1.8 billion ($2.1 billion) pipeline sourced predominately off-market and all from existing relationships, focused on standing assets and pre-let forward-funded developments.
Tritax 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 rise of online retailing in Europe is one of the most significant drivers of occupier demand for logistics space,” said Nick Preston, fund manager of Tritax EuroBox. “Online retail sales across Europe are expected to rise 94 percent from 2016 to 2021, a dynamic which closely resembles how online retail penetration has transformed the U.K. logistics market in recent years.”
