Tritax Big Box REIT plc ACQUISITION OF TWO DISTRIBUTION CENTRES (0773Z)
08 December 2014 - 6:02PM
UK Regulatory
TIDMBBOX
RNS Number : 0773Z
Tritax Big Box REIT plc
08 December 2014
8 December 2014
TRITAX BIG BOX REIT PLC
(the "Company")
ACQUISITION OF TWO DISTRIBUTION CENTRES FOR A COMBINED TOTAL OF
GBP55.1 MILLION,
LOCATED IN DOVE VALLEY PARK, DERBY AND TRAFFORD PARK,
MANCHESTER
The Board of Tritax Big Box REIT plc (ticker: BBOX) is pleased
to announce that it has exchanged contracts to acquire two
distribution centres located in Dove Valley Park, Derby and
Trafford Park, Manchester for a combined purchase price of GBP55.1
million (net of acquisition costs). The two purchases represent a
blended net initial yield of 6.53%, assuming 5.8% purchase costs.
Completion of both purchases is expected to take place by 12
December 2014.
Dove Valley Park is leased to Kuehne & Nagel Limited, a
leading global provider of supply chain solutions, and guaranteed
by Hays PLC, a leading global recruitment company. The investment
is being acquired with an unexpired lease term of approximately
13.5 years, which is subject to five yearly upward only open market
rent reviews. Dove Valley Park is a major 200 acre
industrial/distribution estate situated in an established
distribution location in the North Midlands, close to East Midlands
airport and Birmingham Rail Freights, with direct access onto the
A50 dual carriageway linking the M6 and M1. Originally constructed
in 1997, the property was extended in 1999 to 343,248 sq. ft. It
has an eaves height of 12 metres and a low site cover of 43%.
The distribution centre at Trafford Park is leased to L'Oreal
(UK) Limited, one of the world's leading beauty companies, and is
being acquired with an unexpired lease term of approximately 5
years. Trafford Park remains one of the largest and most successful
business parks in Europe. Trafford Park benefits from a rail
freight terminal, which is the largest in the North West, running
straight through to mainland Europe. It has direct access to the
M60 and the Manchester Ship canal. The property was developed in
2004 and extended in 2013 with a total floor area of 315,118 sq.
ft. and a low site cover of 45%. The building has an eaves height
of 10.2 metres.
Both purchases have been funded from equity proceeds, with
senior debt finance expected to be introduced with respect to the
Dove Valley Park distribution centre in the near term.
The Company is purchasing both distribution centres from the
same vendor. JLL represented the Company. Strutt & Parker
represented the vendor.
Colin Godfrey, Partner of Tritax, commented:
"We are delighted to have exchanged contracts on these two
distribution warehouses which have strong property fundamentals in
recognised logistics locations with excellent transport links. The
Company has now successfully invested or substantially committed
all of the net investable funds from its GBP150 million equity
fundraising in July 2014 and currently has a portfolio comprising
14 UK Big Box assets in aggregate, including these two new
acquisitions."
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.tritaxbigbox.co.uk
This information is provided by RNS
The company news service from the London Stock Exchange
END
ACQUGGAAPUPCUQR
Tritax Big Box Reit (LSE:BBOX)
Historical Stock Chart
From Apr 2024 to May 2024
Tritax Big Box Reit (LSE:BBOX)
Historical Stock Chart
From May 2023 to May 2024