28th Sep 2018 09:36
LONDON (Alliance News) - Tritax Big Box REIT PLC said Friday it acquired a forward funded logistics centre development in Merseyside for GBP68.7 million.
The 360,000 square foot development in Haydock had already been pre-let to a "financially robust world leading retailer". The price represents a net initial yield of 4.9% which would rise to 5.4% at its first rent review in 2024.
The acquisition is conditional on full planning consent being granted. During construction, the developer Bericote will pay Tritax Big Box an income equivalent to the agreed rent.
Upon practical completion of the project, the property will be leased to the unnamed retailer on a new 15 year lease. This will be subject to a five-yearly upward only rent review which will be indexed to the consumer price index.
"We worked very closely with the customer and Bericote to deliver this off-market pre-let development, which provides the company with further exposure to a market leading occupier," Tritax Partner Colin Godfrey said. "Once operational, the building will represent one of the most advanced sortation buildings in the UK on a site with very low site cover, whilst further diversifying the company's portfolio by geography in an established logistics hub with strong labour supply."
Shares in Tritax Big Box were 0.4% higher at 147.30 pence on Friday.
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