Midlands assets to fore in £1bn logistics trade
Tritax Big Box REIT has exchanged contracts on a 32-site acquisition involving £632m cash and the vendor, investment giant Blackstone Europe, taking an 8.6% stake in the enlarged industrial landlord.
The acquisition is expected to complete on or around 22 October 2025, subject to the satisfaction of certain conditions, including a new £650m debt facility to fund the cash consideration.
The deal is described as South East-led, but combined the West and East Midlands regions account for the same volume of the assets included, at 36% each – 24% in the West Midlands and 12% in the East.
Five assets have been added in the Birmingham area, joining a portfolio including its trophy asset in the area, Junction 6 Logistics Park, weighing in at 385,000 sq ft.
Assets in the Birmingham area include the 30-unit 96,000 sq ft Stirchley Trading Estate, along with single units at Deykin Avenue (21,000 sq t), a 35,000 sq ft unit off Chester Road, and a 36,000 sq ft unit off Redfern Parkway.
Nationally, big box units account for 79% of the stock traded, and urban assets 21%.
Colin Godfrey, chief executive of Tritax Big Box, said: “Aligned with our strategic objectives, this exceptional portfolio offers strong rental reversion and numerous asset management opportunities.
“It also significantly broadens our client proposition across key urban logistics markets and reinforces our leading position in mission critical big boxes; in combination growing our GAV to over £7.9bn.”
He continued: “I welcome Blackstone as a new 8.6% shareholder in Tritax Big Box; their investment at a material share price premium demonstrates confidence in our team, our leading position in UK logistics, the strong attributes of the transaction and positive outlook for both our business and the market.”
James Seppala, chairman of Blackstone Europe and head of real estate Europe, added: “This transaction reflects our conviction in BBOX and its market-leading position, as well as our continued conviction in the UK logistics sector. This portfolio represents a rare aggregation of high-quality properties with meaningful embedded rental growth potential.
“The Tritax team’s strong asset management track record make them an excellent steward for these assets in the future. Our decision to take an ownership stake in BBOX as part of this transaction reflects our belief in the company’s long-term strategy and outlook, and we are excited by the opportunity to participate in the future success of the enlarged business.”
