- Brookfield believes the deal ‘fits well with its diverse global logistics portfolio’
- Tritax’s trading enjoyed a significant uplift during the early part of the pandemic
Tritax EuroBox has agreed a new takeover proposal from Canada’s Brookfield, trumping a previous offer from London-listed Segro.
It sets the stage for a potential bidding war for real estate portfolio, which includes highly sought after warehousing and distribution centre assets.
The real estate investment trust said it had accepted a £1.1billion deal from Titanium Ruth, a company indirectly owned by the Canadian investment giant.
This new approach values each Tritax EuroBox share at 69p, a 6 per cent rise on the 65.1p-per-share proposal agreed with Segro last month, and a 28 per cent premium to its share price on 31 May before the offer period began.
Different approach: Tritax EuroBox has struck a new takeover proposal with Brookfield that trumps a previous offer from property developer Segro
Brookfield believes the acquisition ‘fits well with its diverse global logistics portfolio’, which currently encompasses 85 million square feet of space.
It also said taking Tritax private would ‘better position’ the FTSE 250 business for additional investment in existing assets.
Since listing on the London Stock Exchange in 2018, Tritax’s has been hampered by its share trading at persistent discount to their net asset value – a familiar issue for UK-listed trusts targeting illiquid assets like property.
The firm’s trading enjoyed a significant uplift during the early part of the Covid-19 pandemic as soaring online commerce growth boosted demand for warehouses.
However, its assets have shrunk in value over the past two years amid interest rate hikes and loosening lockdown restrictions driving people back to shopping in stores.
Robert Orr, chairman of Tritax EuroBox, said the group’s shareholders ‘will benefit from a significant uplift over the undisturbed value of their investment with flexibility to reinvest as they see fit’.
Headquartered on London’s Old Bond Street, Tritax is a specialist investor in logistics hubs and distribution centres across continental Europe.
It holds 1.5 million square metres of space with a total value of around €1.5billion in countries like Germany, Italy and Sweden, and counts retail giants Amazon and Wayfair, as well as medical devices maker Abbott Laboratories among its clients.
Brad Hyler, head of real estate in Europe at Brookfield, said: ‘Tritax EuroBox has a high-quality portfolio of logistics assets in strategic locations across Europe.
‘These assets are complementary to our existing portfolio and, using our global real estate expertise, we will actively manage these assets, provide access to capital, help build new relationships with our network of tenants and support the overall growth of the platform.’
Brookfield, whose chairman is former Bank of England chairman Mark Carney, first revealed it was considering an offer for Tritax in May.
The Toronto-based firm holds a 50 per cent stake in Canary Wharf Group, alongside the Qatari Investment Authority, and owns Center Parcs UK and Ireland, payments firm Network International, and property repair services provider Homeserve.
Tritax EuroBox shares were 0.6 per cent lower at 152.1p on Thursday morning.
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