Helaba has provided two loans to Tritax Big Box held against UK logistics assets.
The two five-year loans combine to £18.66m and have an overall loan-to-value of 39.3%. As a result of the deals the company’s blended margin payable across its financings is 1.75% above LIBOR and it has a gearing level of 38.4%.
The logistics sector has had a strong year, attracting both investors and financiers alike with its relatively high yields compared to other sectors.
The two assets are both leased to DHL Supply Chain on ten-year leases. They are the 225,680 sq ft Langley Mill near Nottingham, against which Helaba has lent £7.06m and a 470,000 sq ft warehouse in Skelmersale, Lancashire, against which it has lent £11.6m.
The company may take on slightly more debt as time goes on – it set out to have an initial target gearing level of 45% and a medium term target of 40%.
Tritax Big Box was floated on the London Stock Exchange in November last year, raising an initial £200m. It raised a further £150m in July.
In June the company financed its purchase of a £97.8m distribution centre let to Morrison with a £53.8m loan from Barclays.