29th Aug 2014 11:19
LONDON (Alliance News) - Tritax Big Box REIT PLC Friday said it has acquired the Wolseley regional distribution centre at Ripon, North Yorkshire 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 Wolseley regional distribution centre at Ripon, which is Wolseley's sole centre serving 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 current passing rent is GBP838,500 per year, or GBP3.78 per square foot, with the next rent review due in September 2016. Tritax Big Box expects the next rent review to be "reversionary."
Ripon is one of three regional distribution centres in the UK for Wolseley. The others are located in Worcester and Bedford. They are supported by the national distribution centre and head office at Leamington Spa.
The real estate investment trust's shares were Friday quoted down 0.6% at 106.90 pence.
By Samuel Agini; [email protected]; @samuelagini
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