1st Sep 2014 17:31
(An item published at 1219 BST on Friday August 29 has been amended to reflect corrections made by the company. The correct version follows.)
LONDON (Alliance News) - Tritax Big Box REIT PLC Friday said it has acquired the freehold investment leased to Wolseley UK in Melmerby for GBP12.2 million after acquisition costs, reflecting a net initial yield of 6.73% on the corporate acquisition, assuming 1.8% costs.
In a statement, the real estate investment trust said it funded the purchase through equity proceeds, and expects to introduce senior debt finance in the near term.
"We are delighted with our acquisition of the site and building leased by Wolseley UK in Melmerby, Ripon, which serves the North of England, Scotland and Northern Ireland with immediate motorway connectivity. It also provides tenant diversification to our current portfolio," Colin Godfrey, partner of Tritax, said in a statement.
The distribution warehouse is being acquired with an unexpired lease term of approximately 12.5 years, which is subject to five yearly open market rent reviews. The next rent review due in September 2016, and Tritax Big Box expects it to be "reversionary."
Melmerby is one of five distribution centres in the UK for Wolseley UK Ltd.
By Samuel Agini; [email protected]; @samuelagini
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