UK-based property company, Tritax EuroBox, has successfully exchanged contracts for the sale of a German warehouse asset for €64.6m (£55.8m).

The sale, to an unnamed pan-European real estate investment manager, has been priced broadly in line with the asset’s valuation as of 31 March 2023, reflecting a net initial yield of 4.45%.

Tritax EuroBox, headquartered in London, invests in distribution centres across Europe. It is listed on the London Stock Exchange and is currently a constituent of the FTSE 250 Index.

The firm first purchased the 43,200 sqm prime logistics property in Hammersbach, Germany, for €50.6m (£43.7m) in June 2019. Following an asset management initiative that resulted in a new lease to B+S GmbH Logistik und Dienstleistungen, the group stated that its business plan for the asset has now been “completed”.

With an unexpired lease term of six years and no other imminent asset management opportunities, the sale allows the company to realise the value of the asset through a profitable disposal.

Tritax EuroBox suggested that the asset’s disposal marks an “important step” in its recently announced sales programme – with a total disposal target of at least €150m (£129.5m) before the end of 2024. The asset represents about 2% of the company’s annualised rental income and reduces the pro forma LTV to around 43%.

Investment director at Tritax EuroBox, Alina Iorgulescu, commented: “The completion of this sale supports our strategy of crystallising value and recycling proceeds into reducing leverage and funding existing portfolio opportunities.

“The sale to a leading pan-European real estate investor, broadly in line with valuation, highlights the attractiveness of the properties in our portfolio, and evidences the continued investor interest and market stabilisation for high-quality logistics assets. This provides us with confidence to complete further disposals as we continue to recycle capital within our business.”

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