Tritax Big Box REIT plc ACQUISITION OF DISTRIBUTION WAREHOUSE MANCHESTER (2461Y)
28 November 2014 - 6:01PM
UK Regulatory
TIDMBBOX
RNS Number : 2461Y
Tritax Big Box REIT plc
28 November 2014
28 November 2014
TRITAX BIG BOX REIT PLC
(the "Company")
ACQUISITION OF DISTRIBUTION WAREHOUSE, MIDDLETON, MANCHESTER
FOR GBP22.45 MILLION
The Board of Tritax Big Box REIT plc (ticker: BBOX) is pleased
to announce that it has exchanged contracts on the Tesco
distribution warehouse in Touchet Hall Road, Middleton, Manchester
for GBP22.45 million (net of acquisition costs), reflecting a net
initial yield of 8.25%, assuming 5.8% standard costs of purchase.
Completion is expected to take place on 2 December 2014. The
purchase, which was off-market, has been funded out of equity
proceeds.
The distribution warehouse is situated on Stakehill, an
established 200 acre industrial estate providing 2.5 million sq ft
of logistics space and employing 2,500 people, just to the east of
Junction 20 of the M62. Manchester is approximately 8 miles to the
east, and Liverpool 42 miles to the west. The industrial estate is
home to a critical mass of occupiers including Sainsbury, Aldi,
Booker and several third party logistics operators such as Bibby,
Yodel and NFT Distribution.
The facility provides a rentalised area totalling 301,479 sq ft
with a very low site cover of 31%. The unit was constructed in 1988
and has an eaves height of approximately 12 metres. The property,
which is currently unoccupied, is leased to Tesco Stores Limited,
for an unexpired term of approximately 9.2 years, with two further
rent reviews in December 2017 and 2022.
SG Commercial represented the Company and DTRE represented the
vendor.
Colin Godfrey, Partner of Tritax, commented:
"We are pleased to announce our third acquisition in the North
West, a region which has witnessed the highest levels of activity
for industrial take up, accounting for over 25% of all industrial
sector real estate transactions in the UK in 2014 so far. We see
potential significant value add opportunities through asset
management of this distribution warehouse."
For further information, please contact:
Tritax Group via Newgate Communications
Colin Godfrey (Partner, Fund Manager)
Newgate Communications (Financial Tel: 020 7680 6550
PR) Email: tritax@newgatecomms.com
James Benjamin
Clotilde Gros
Georgia Lewis
Jefferies International Limited Tel: 020 7029 8000
Gary Gould
Stuart Klein
Alex Collins
Akur Limited Tel: 020 7493 3631
Anthony Richardson
Tom Frost
Siobhan Sergeant
NOTES:
Tritax Big Box REIT plc is a real estate investment trust to
which Part 12 of the UK Corporation Tax Act 2010 applies ("REIT").
The Company invests in a portfolio of well-located, modern "Big
Box" assets, typically greater than 500,000 sq. ft., let to
institutional-grade tenants on long-term leases (typically between
12 and 25 years in length) with upward-only rent reviews (giving
inflation linked earnings growth), and with geographic and tenant
diversification throughout the UK. The Company seeks to exploit the
significant opportunity in this sub-sector of the UK logistics
market owing to strong tenant demand in high growth areas of the
economy and limited stock supply. The Company is the first listed
vehicle to give pure exposure to the "Big Box" asset class in the
UK.
Further information on Tritax Big Box REIT is available at
www.tritaxbigboxreitplc.co.uk
This information is provided by RNS
The company news service from the London Stock Exchange
END
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