European logistics property investor Tritax EuroBox (EBOX) fell 1.4% to 113.4p as it announced a £170 million placing and a new development in Germany.
The company revealed a deal to acquire land for the development of a new high specification and sustainable logistics asset in Oberhausen, a location in the Rhine-Ruhr region of Germany.
Separately, Tritax announced plans for a £170 million placing at 111.5p per share to secure the acquisition of a near-term investment pipeline of around €520 million of prime big box logistics assets in key locations in Continental Europe.
This pipeline encompasses two German assets for over €170 million which are in exclusivity and in the final stages of due diligence.
There are six further assets for an aggregate investment of around €350 million including zoned development land and forward funding developments.
On the Oberhausen development, it will now enter into a forward funding agreement to construct the building. The project will be undertaken by Verdion, which specialises in European industrial and logistics real estate.
The land purchase is conditional on receiving the building permit and access rights which are both expected in the near-term.
This acquisition is structured as a forward funding development opportunity, where Tritax has agreed an aggregate fixed purchase price of €29.9 million comprising land purchase, construction of the buildings and developer's profit. There is the potential for an additional incentive payment to Verdion if certain leasing conditions are met.