1st Jun 2015 07:13
LONDON (Alliance News) - Tritax Big Box REIT PLC Monday said it has bought the Tesco Regional Distribution Centre at Capitol Park in Goole for GBP47.1 million, funded out of equity proceeds.
Tritax said the price reflects an initial yield of 5.67% on the asset purchase and added that senior debt finance is expected to be introduced in the near term.
The site has an unexpired lease term of approximately 17.5 years and is subject to five yearly upward-only open market rent reviews, with the next rent review due in two and a half years, Tritax said.
Completion of the deal is expected by June 5.
"At over 700,000 square feet, the Tesco Goole Regional Distribution Centre distributes general merchandise across northern England. The property is close to the East Coast ports for goods inwards and has excellent road and rail connectivity. The area also benefits from an undersupply of Big Box distribution assets available to let and, when coupled with the high and increasing demand from prospective occupiers, is already producing attractive rental growth," Tritax Partner Colin Godfrey said in a statement.
"To date, the company has made 21 Big Box investments with a portfolio weighted average unexpired lease term of over 15 years and this latest purchase helps further support our target to achieve an annual dividend of 6 pence per share for 2015," Godfrey added.
Shares in Tritax opened down 0.2% at 115.50 pence Monday.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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