8th Dec 2016 07:51
LONDON (Alliance News) - Tritax Big Box REIT PLC said Thursday it has completed the land purchase and exchanged contracts to forward fund a new distribution facility in Staffordshire, which has been pre-let to Screwfix Direct Ltd.
Tritax said the facility, at Prologis Park Fradley, represents an investment of GBP52.7 million, with an initial net yield of 5.5%.
The real estate investment fund, which invests in big box distribution warehouses, said completion of the construction is targeted for October 2017, and will be leased to Screwfix, which is a subsidiary of DIY retailer Kingfisher PLC, on a 10-year basis. That lease will be subject to five yearly upward-only market rent reviews.
Tritax said the land purchase has been funded by equity proceeds, with senior debt finance to be introduced to the project in the near term.
"This investment which is accretive to our dividend is a good addition to our portfolio, offering tenant and business sector diversification with a strong covenant. The property is located within the Golden Triangle for UK logistics, which is seeing positive rental growth. This represents our eighth pre-let forward funded development and brings our total portfolio to 35 assets," said Colin Godfrey, partner in Tritax.
By Adam Clark; [email protected]
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