29th Jan 2015 08:02
LONDON (Alliance News) - Tritax Big Box REIT PLC Thursday said it has exchanged contracts to build a new distribution warehouse facility for FTSE 250-listed online grocer Ocado Group PLC.
Tritax, a real estate investment trust, said it will provide forward funding for the new warehouse, which will be located inside the M25 in Erith, South-East London, and pre-let in its entirety to a subsidiary of Ocado. The agreement is for a 30-year lease.
The investment price is GBP98.8 million, reflecting a yield of 5.25%, it said. The facility will be developed by Bericote Properties and funded by Tritax.
"The 35 acre site will be the location of an important South East logistics hub for Ocado to help fulfil its growing capacity needs in London and the South East. The investment will comprise a new distribution warehouse, with a gross internal area of approximately 560,000 square feet," Tritax BIG Box said in a statement.
In a separate statement, Ocado said that although planning consent is not yet secured, it expects the the fit-out work on the new warehouse to start in 2016 and be operational by 2017.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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