Tritax Big Box stock jumps after £1.04 billion logistics portfolio acquisition

Published 13/10/2025, 08:34
© Reuters.

Investing.com -- Tritax Big Box REIT plc (LON:BBOXT) stock rose 2.2% on Monday following the announcement of a £1.04 billion acquisition of a high-quality logistics portfolio from Blackstone (NYSE:BX), with the deal expected to deliver mid-single digit earnings per share accretion from the first year.

The UK logistics property company has exchanged contracts to purchase a 6.5 million square foot portfolio comprising 409 units across 41 locations, with the transaction expected to complete around October 22, 2025. The acquisition will be funded through a mix of £632 million in cash via a new debt facility and approximately £375 million in newly issued shares.

Blackstone will become a significant shareholder with approximately 8.6% of Tritax’s enlarged share capital, with the consideration shares being issued at 161p - representing a 13.5% premium to Tritax’s closing price of 141.9p on October 10.

The portfolio consists primarily of urban logistics and big box assets located in core UK regions, with 36% weighted to the South East. The assets generate approximately £53 million in annual passing rent with significant upside potential, as the estimated rental value of £67 million represents a 28% increase over current rents.

Tritax highlighted the strategic rationale for the acquisition, noting the portfolio’s high-quality, well-located assets were purchased below replacement cost. The company expects to capture over 80% of the rental reversion potential prior to the end of 2028 through contractual lease events and other asset management initiatives.

Following the acquisition, Tritax’s gross asset value will increase to £7.86 billion with loan-to-value rising to approximately 35%. The company plans to undertake about £300 million in targeted disposals over the next 12-18 months to reduce leverage to the lower end of its 30-35% target range.

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