18th Jun 2014 12:08
LONDON (Alliance News) - Tritax Big Box REIT PLC Wednesday said it has agreed to acquire a Wm Morrison Supermarkets PLC distribution centre in Kent from the grocer for GBP97.8 million, meaning it is now substantially fully invested.
In a statement, Tritax Big Box said that the distribution centre acquisition is subject to a new leaseback agreement with Morrisons for 25 years with annual rent reviews indexed to the UK retail price index measure of inflation, capped at 2%. The acquisition will give Tritax an initial net yield of 5.2%.
"The Morrisons distribution centre at Sittingbourne is extremely well located with excellent transport links, facilitating the large-scale delivery of merchandise across the UK and Europe. It was chosen by Morrisons to be its strategic South East regional distribution centre for both chilled and ambient general merchandise, and now serves 53 'M Locals' and 85 of their main supermarket stores ranging from the Isle of Man to Ipswich," Tritax partner Colin Godfrey said in a statement.
Tritax said it has agreed a GBP53.8 million debt financing deal secured on the asset to fund the acquisition. The debt financing is for a five-year term that can be extended up to a maximum of seven years.
Tritax shares were Wednesday quoted at 106.28 pence, up 0.03%.
By Samuel Agini; [email protected]; @samuelagini
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