1st May 2015 07:01
LONDON (Alliance News) - Tritax Big Box REIT PLC said Friday it has exchanged contracts to buy one of New Look Retailers Ltd's two adjoining national and European distribution centres in Newcastle-under-Lyme for GBP30.1 million.
This reflects a net initial yield of 5.9%, Tritax said. It will fund the purchase from equity proceeds and senior debt financing that is expected to be introduced "in the near term". It expects to complete the purchase next Wednesday.
The property has a gross internal area of 396,937 square feet with a site cover of 47%. It is being bought with an unexpired lease term of around 10 years, subject to five yearly upward only rent reviews.
"The property has benefited from significant capital expenditure by the tenant and a circa 100,000 square foot extension in 2011, demonstrating New Look's commitment to the location. This property is strategically positioned with a critical mass of high quality occupiers in the surrounding area where there are no high quality Big Boxes available to let, providing a favourable dynamic for rental growth," said partner Colin Godfrey in a statement.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Tritax Big Box