12th Oct 2018 07:35
LONDON (Alliance News) - Tritax Big Box REIT PLC said Friday that it has exchanged contracts to provide GBP89.3 million forward funding for the development of a new distribution centre at Midlands Logistics Park located in Corby, England.
The development represents a net initial yield of 5.2%, net of acquisition costs to the company, the company said, adding that the 945,375 square feet property is pre-let to BSH Home Appliances Ltd, part of home appliances manufacturer Bosch Group.
Upon completion of construction, targeted for Autumn 2019, the property will be let to BSH Home on a new 10-year lease, subject to five yearly upward only rent reviews indexed to the Retail Price Index, subject to a cap and collar.
"This off-market investment adds to our portfolio's core foundation income and offers good potential for rental growth," said Colin Godfrey, partner at Tritax.
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