Two of the biggest names in logistics property development, Prologis UK and Tritax, have joined forces to publish a report designed to inspire other businesses in the construction and logistics sectors to take a more proactive approach to delivering social value. The report, entitled ‘Building for social good’ shares the
Tritax Management LLP (“Tritax”), the specialist investor in critical supply chain real assets, today announced that all of its funds under management achieved improved GRESB scores, the global ESG benchmark for real estate and infrastructure, whilst its two listed funds were also awarded EPRA Gold Level certification. Highlights from the
Tritax Big Box REIT plc (Tritax Big Box or the Company) announces that it has received planning consent* and exchanged contracts with a world leading on-line retailer (the Customer) to pre-let a new Mega Box logistics building. The pre-let and planning consent (the Project) covers the Phase 2 and part
Tritax Big Box REIT plc (Tritax Big Box or the Company) today announces completion on the sale of its Chesterfield asset for £57.3 million. We acquired the asset in March 2014 when it had 6.2 years of lease remaining to Tesco. In 2018, we implemented a pro-active asset management initiative and agreed
BDC 319 : Aug 2024
Two of the biggest names in logistics property development, Prologis UK and Tritax, have joined forces to publish a report designed to inspire other businesses in the construction and logistics sectors to take a more proactive approach to delivering social value. The report, entitled ‘Building for social good’ shares the experiences of both companies in their efforts to deliver a positive impact to people and communities in the areas where they own and develop logistics properties. Importantly, the report also explains how each has successfully managed their social impact through the use of data, which has enabled accurate and meaningful measurement. This in turn has helped to engender the support needed to prioritise social value delivery in the future. Both Prologis UK and Tritax have used a social value measurement tool, called the National TOMs (Themes, Outcomes, Measures) Framework. . Mapped to the UN’s Sustainable Development Goals (SDGs), this Framework enables businesses to quantify the social and local economic value of their activities by attributing a monetary value equivalent to them. This in turn enables businesses to measure and manage social value. The National TOMs Framework centres on five themes – jobs, growth, social, environment and innovation – and outcomes include wide-ranging activities such as giving up staff time for community training initiatives, creating jobs and improving the local environment. In addition to providing guidance on its implementation, the report includes several case studies to illustrate how the Framework is being applied by Prologis and Tritax . For example, during the construction of a state-of-the-art Logistics Operations Centre for Jaguar Land Rover in Solihull, West Midlands, Prologis explains how more than £12 million of social and local economic value has been committed by the project partners. Similarly, Tritax explains how a brownfield redevelopment project at Littlebrook, Dartford, is generating more than £13 million in social and local economic value, including the creation of 1,300 jobs. Simon Cox, head of sustainability, Prologis UK, said: “Once you understand the power of social value initiatives to boost jobs, create lasting economic value, attract investment and enhance employer brands, it becomes hard to argue against. Which businesses wouldn’t want to invest in social value creation, in the same way they might consider investing to improve their products or services?” Alan Somerville , ESG Director , Tritax, commented on the company’s project at Littlebrook saying: “Creating social and local economic value is about creating a positive legacy for the future that enhances the world in which we live and work. Our scheme at Littlebrook has enhanced biodiversity in the local area at the same time as creating valuable training and employment opportunities.” A free download of the report is available here. Building, Design & Construction Magazine | The Choice of Industry Professionals
Tritax Management LLP (“Tritax”), the specialist investor in critical supply chain real assets, today announced that all of its funds under management achieved improved GRESB scores, the global ESG benchmark for real estate and infrastructure, whilst its two listed funds were also awarded EPRA Gold Level certification. Highlights from the 2022 GRESB report: Improved ESG performance and data coverage across all Tritax funds, achieving a total of 13 stars compared to 12 green stars in 2021. Tritax Big Box REIT plc and Tritax EuroBox plc both achieved the maximum score for the criteria of Leadership, Policies, Reporting, Risk Management and Stakeholder Engagement. Tritax Big Box REIT plc was awarded four stars and named the Leader for Development in the European and Global Industrial Sectors for the second consecutive year. Tritax EuroBox plc was awarded the maximum five stars, an improvement on four stars awarded in 2021, and named the Leader in Sustainability for European Industrial Distribution Warehouses Listed Sector. Highlights from the 2022 EPRA report: Tritax Big Box retained its EPRA Gold Level certification and was one of only nine companies to achieve the most improved award for its 30% year-on-year improved performance. Tritax EuroBox has also been awarded EPRA Gold Level certification for sustainability best practice in its first year of inclusion in the EPRA Sustainability Best Practices Recommendations Report. James Dunlop, CEO – Investment at Tritax, commented: “At Tritax, we believe that collaborating with our stakeholders to deliver a cleaner, healthier and more equitable society drives superior returns over the long term. We make significant efforts to work in partnership with our customers so they can meet their ESG objectives and create the best buildings delivering the widest positive impact that will meet the highest sustainability and wellbeing standards. The year-on-year increase in our GRESB scores across all our funds, combined with EPRA Gold Level certification for our listed funds, demonstrates that we continue to make progress in improving our environmental, social and governance performance and delivering better outcomes for our investors and other stakeholders.” Alan Somerville, Director of ESG at Tritax, added: “Our EPRA certifications and GRESB scores reflect our ambitious ESG programme, which is underpinned by meaningful targets set across both our asset management and development management activities. We are actively delivering positive environmental and socio-economic impact by developing and managing net zero carbon buildings with high green building standards, that enhance nature and biodiversity and create social value.” ESG is fundamental to the strategy of the Group’s funds under management and is integrated throughout their investment processes and operations. The Group and its funds focus on four key priorities, aligned with the United Nations’ Sustainable Development Goals (SDG), where they believe they can make the greatest difference: sustainable buildings (aligned with SDG 11), climate and carbon (aligned with SDG 13), nature and wellbeing (aligned with SDG 15), and social value (aligned with SDG 8). To discover more about Tritax’s approach to ESG visit www.tritax.co.uk/esg. GRESB scores and ratings across Tritax’s funds under management: Fund Total Score Star Rating 2022 2021 2022 2021 Tritax Big Box REIT plc 83 81 4-star 4-star Tritax Big Box REIT plc – Development* 99 97 5-star 5-star Tritax EuroBox plc 88 82 5-star 4-star Tritax Property Income Fund 71 69 2-star 2-star Tritax MetroBox 71 68 2-star 2-star *Development not included in total score DOWNLOAD REPORT
Tritax Big Box REIT plc (Tritax Big Box or the Company) announces that it has received planning consent* and exchanged contracts with a world leading on-line retailer (the Customer) to pre-let a new Mega Box logistics building. The pre-let and planning consent (the Project) covers the Phase 2 and part of Phase 3 plots of the Company’s Littlebrook, Dartford development, comprising a c.2.3 million sq ft logistics building on 35.5 acres within London’s orbital M25 motorway and next to critical transport infrastructure. Leveraging existing customer relationships to maximise development potential In line with its strategy, Tritax Big Box worked closely with the Customer, an existing tenant of other Big Box assets of the Company, to understand their current and future requirements and develop an optimal logistics solution from Littlebrook’s c.97 net acres of development land, acquired in July 2017. The site will play a key role in the Customer’s local and national distribution and fulfilment network in addition to delivering economic and employment benefits to the area. Following completion, the Customer will occupy over 7 million sq ft of high-quality Big Box logistics space within the Company’s portfolio representing c.19% of total contracted rent roll. The Littlebrook development project, formerly the site of a decommissioned power station, is adjacent to the QE2 Bridge, Dartford Tunnel and on the south bank of the River Thames and has the potential to become one of London’s largest Big Box logistics parks in a critical “last journey” location inside the M25. This is a rare asset so close to the heart of London, benefiting from exceptional transport connectivity via motorway, rail and water, excellent infrastructure, significant power provision and a robust labour market. State of the art sustainable logistics building, meeting the needs of the market The Company, together with its development partner, Bericote Properties (the Developer), has successfully secured detailed planning permission* from Dartford Borough Council for this pre-let development. With practical completion expected in Summer 2021, this highly sustainable building will target an Excellent BREEAM and EPC A ratings, with key features including: Gross internal floor area of c.2.3 million sq ft, including three structural mezzanine floors Clear internal height of 20 metres High levels of automation through capital investment by the Customer Substantial 3.5 MW solar PV scheme Delivering attractive returns to investors The Project development will deliver attractive returns to investors based upon: A new 20-year lease, subject to annual upward only rent reviews indexed to the Consumer Prices Index (collared at 1% pa and capped at 3% pa) with the first review in Summer 2022. The Company will benefit from a licence fee from the Developer during the construction period equivalent to the annual rent payable by the Customer following completion of the building. The total development cost for the delivery of this project, including land and demolition, is expected to be £205 million. This development has been committed to using existing credit facilities, with a further £164 million costs to completion. In total, this Project delivers a yield on cost which is in-line with the stated development target for the site and enhances the Company’s income. The completion of this Project is expected to achieve the Company’s original expectations for the overall development profit on the Littlebrook site. Colin Godfrey, CEO, Fund Management, commented: “The signing of this pre-let for a 2.3 million sq ft prime logistics facility is a great achievement and demonstrates our strategy is working. By combining our deep understanding of the market and long-standing customer relationships forged across existing high-quality assets with an attractive development portfolio, we are creating significant value for our customers and investors. Furthermore, recent macro events are accelerating substantial tailwinds for our business through the ongoing adoption of e-commerce platforms as consumers increasingly shop online. “This enhances our existing portfolio with a substantial, prime and sustainable logistics investment at an attractive yield on cost as we advance our plans to transform this disused brownfield site into a new premium logistics park. Working with our partner Bericote, the development of the site will not only deliver much sought-after high specification logistics space for London, but will also bring enhanced local infrastructure and significant employment opportunities to the local area, strengthening its economic growth.”
Tritax Big Box REIT plc (Tritax Big Box or the Company) today announces completion on the sale of its Chesterfield asset for £57.3 million. We acquired the asset in March 2014 when it had 6.2 years of lease remaining to Tesco. In 2018, we implemented a pro-active asset management initiative and agreed an early surrender of the existing lease to Tesco and secured a new 15-year lease to Amazon, significantly enhancing the value of the asset. Having completed all key asset management initiatives, and as part of our ongoing portfolio evaluation, we decided to realise the value created on this asset via a sale to Warehouse REIT. The price is a premium to the 30 June 2020 book value and reflects an IRR of 18.5% per annum. This asset sale demonstrates our ability to create and realise value in our portfolio by direct and active asset management while the proceeds from the disposal will be redeployed into attractive opportunities, including our development pipeline with a target yield on cost of 6-8%. Colin Godfrey, CEO, Fund Management, commented:“The sale of our Chesterfield asset for £57.3 million demonstrates the successful implementation of our strategy and is a great result for our shareholders. Through our active management, and working closely with our customers, we were able to support them while significantly enhancing the value of the Chesterfield asset, securing a high-quality tenant on attractive lease terms. There is strong investment demand in the market for high-calibre logistics assets of this nature, which we are able to take advantage of through carefully selected disposals, redeploying the proceeds into attractive opportunities including our development pipeline where we expect to deliver a 6% to 8% yield on cost. “With investment demand in the market remaining strong, and attractive opportunities for us to deploy capital, we expect to complete a number of further disposals during the remainder of this financial year”
