29th Apr 2015 08:32
LONDON (Alliance News) - Tritax Big Box REIT PLC on Wednesday said it has struck a deal to acquire the B&Q Core Products Regional Distribution Centre in Nottinghamshire for GBP89.8 million.
The purchase price for the property reflects a net initial yield of 5.13%, with the proceeds funded out of equity proceeds.
The centre is being acquired with an unexpired lease term of approximately 16.5 years, which is subject to five yearly rent reviews to the higher of the Open Market Rent or the UK Retail Price Index, capped at 5%, Tritax said. The next review is due to be in November 2016.
"We are pleased to have acquired the modern B&Q Core Products Regional Distribution Centre in Nottinghamshire, which has benefited from significant capital commitment by the tenant and provides opportunities for capital value enhancement," said Tritax Partner Colin Godfrey.
"This off-market investment further diversifies our range of tenants and increases to 15.4 years the weighted average unexpired lease term of our portfolio, which now comprises 18 high calibre property assets," Godfrey added.
B&Q is the home improvement products retailer owned by Kingfisher PLC.
Tritax shares were up 0.1% to 116.85 pence on Wednesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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