Big shed specialist increases share offer to £350m as demand is oversubscribed

A £200m fundraising by big shed specialist Tritax has proved such a success that the offer is being increased to £350m.

The REIT, which is behind two of the biggest commercial warehouse schemes in the Midlands, said demand for the shares had been massive, with the original offer being over-subscribed.

In a market update on the offer, Tritax said: “Investor demand has significantly exceeded the targeted size of £200m. The board, after careful consideration with the manager and in consultation with its joint financial advisers, has exercised its right to increase the size of the (share) issue to the maximum of £350m.”

The net proceeds of the issue will be used by the company to acquire further assets. The company said it currently expects to deploy the net proceeds within six months of the shares being admitted for trading.

Richard Jewson, non-executive chairman of Tritax, said: “We continue to believe that the Big Box logistics sector is one of the most attractive asset classes in the UK property market and this fundraising will enable the company to build upon its strong position and pursue attractive investment opportunities.”

Colin Godfrey, partner at Tritax, said the company was already in talks with the owners of a number of attractive assets.

“The proceeds from this fundraising will allow the company to pursue an identified pipeline of opportunities that we believe will be value-accretive to shareholders over the medium term,” he said.

Tritax is aiming to complete the new Gestamp automotive stampings facility in Staffordshire by July, followed by the completion of the Screwfix warehouse in Fradley in October.

Jefferies International and Akur are acting as JFAs, with Jefferies acting as sponsor, sole global coordinator and bookrunner in relation to the issue.