7th Apr 2014 13:08
(An item published at 1329 BST on April 4 incorrectly said that Tritax bought a property from Tesco PLC, when Tesco only leases the property. The correct version follows.)
LONDON (Alliance News) - Tritax Big Box REIT PLC Friday said it has exchanged contracts to buy a distribution centre that's leased by Tesco PLC at Southmead Industrial Estate in Didcot for GBP27.2 million, reflecting a net initial yield of 6.9%.
The company did not say which company it was buying the distribution centre from.
Tritax Big Box said that the deal is set to complete on April 28 and will initially be funded out of equity proceeds, with senior debt finance expected to be introduced in the near term.
The distribution centre was originally developed for Tesco and comprises a purpose-built distribution warehouse with integral two storey ancillary offices plus extensive parking over approximately 13.8 acres, on a rentalised area of 325,445 square feet.
Tritax said the distribution centre is being acquired with an unexpired lease term of approximately 10.4 years, which is subject to a five yearly open market rent review in July 2014.
By Tom McIvor; [email protected]; @TomMcIvor1
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